Although overall approval rates are higher this year, application funding rates for subprime credit have fallen, according to a recent best practices survey conducted by The Center for Auto Finance Excellence.
Meanwhile, delinquency and loss rates have worsened — particularly on subprime — and lenders are still spending more, specifically on technology and compliance.
The best practices survey received responses from a variety of auto finance professionals. Following are key takeaways from the results:
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Overall, 39% of respondents said prime approval rates got higher or much higher this year, as compared to last year, while 39% said approval rates are unchanged.
Additionally, 30% of respondents said subprime approval rates are higher or much higher this year, while 15% said approvals are unchanged.