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Near- and Non-Prime Consumers Continue to Face Barriers in the New and Used Vehicle Markets, Open Lending Research Finds
Lending enablement provider releases quarterly data report on near- and non-prime automotive lending trends, regional vehicle preferences AUSTIN,
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, regional vehicle preferences\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 report covers vehicle sales volume, interest rates, payment trends and consumer preferences in the first quarter of 2024. In addition to national data, this research offers findings on regional near- and non-prime automotive lending.\n\n\nUsing AutoCreditInsightTM data, the report offers insight into the opportunity for auto lenders to serve near- and non-prime consumers, a vital audience segment for financial institutions seeking member growth and greater yields in their auto lending portfolio. Key findings include the following:\n\n\n\nIn the used vehicle market, low inventory and high prices are disproportionately impacting near- and non-prime borrowers nationwide. In the first quarter of 2024, vehicle registrations among prime and super-prime borrowers increased by 3% for used and 7% for new compared to the first quarter of 2023. Meanwhile, vehicle registrations among near- and non-prime borrowers decreased by 6% for used and climbed just 1% for new.\n\n\n\nNear- and non-prime borrowers are also facing regional differences in vehicle affordability. Average used vehicle prices are up 6% in Southeast, and average new vehicle prices are up 5% in the West, while the rest of the country has remained relatively flat for new and used.\n\n\n\nThe Honda Civic remains the top-registered new vehicle and Ford F-Series the top-registered used vehicle among near- and non-prime borrowers.\n\n\n\n“Although the automotive market shows signs of stabilizing, near- and non-prime consumers remain challenged in the used vehicle market. This is due to tightening availability of credit, persistently high interest rates and vehicle prices, and increased ownership and insurance costs,” said Kevin Filan, SVP of marketing at Open Lending. “Regardless of credit score, most Americans need reliable vehicles to access good jobs, c...