Near- and Non-Prime Consumers At Risk of Being Priced Out of the Vehicle Market, Open Lending Research Finds

About this update from Open Lending Corporation

[{"type":"text","content":"\nLending enablement provider releases quarterly data report on near- and non-prime automotive lending trends, potential for EV access\n\n\n AUSTIN, Texas--(BUSINESS WIRE)--\nOpen Lending Corporation (NASDAQ: LPRO) (“Open Lending” or the “Company”), an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, today released a new Near- and Non-Prime Consumer Update, continuing its quarterly report series on automotive lending trends among near- and non-prime consumers. The latest Update uncovers disproportionate economic impacts on the underserved, spotlighting opportunities for automotive lenders to drive vehicle accessibility.\n\n\nNear- and non-prime consumers are at risk of being priced out of the automotive market entirely. Tracking these trends can help automotive lenders position themselves to serve deserving yet overlooked consumers. Key findings from the study include:\n\n\n\nUsed near- and non-prime registrations are down double digits year over year. Near- and non-prime registrations declined 10% in 2023, while prime and super-prime stayed flat.\n\n\n\nVehicle prices may be starting to come down, but monthly payments are not. While the average vehicle price dipped year-over-year in Q4 2023, the average monthly payment rose, with near- and non-prime consumers taking on a larger payment hike than prime and super-prime consumers.\n\n\n\nEVs may be starting to become accessible to consumers outside of prime. New near- and non-prime EV registrations grew 161%, and used EV registrations saw almost 100% growth year-over-year in the fourth quarter.\n\n\n\nNear- and non-prime consumers are showing a renewed interest in leasing, likely as a means to offset high interest rates and monthly payments.\n\n\n\n“The economy is slowly improving, but high vehicle prices and interest rates are putting lower-credit consumers in a tough position, where access to personal transportation is often prohibitively expensive,” said Kevin Filan, SVP of marketing at Open Lending. “Data shows there is more to these consumers’ borrowing potential than their credit scores show. By bringing them loan opportunities they can afford at a time of macroeconomic difficulty, automotive lenders can secure a stronger future for the automotive industry. Using AI-powered risk analysis and bolstered by default i...

More updates from Open Lending Corporation