The auto finance industry is “statistically due for an adjustment,” and yet, there are only a few “red flags” that a downturn in the cycle is coming, Hyundai Capital America’s Chief Risk Officer Marcelo Brutti told Auto Finance News.
“We’re not seeing a clear indication for when it’s [the downturn] going to happen and how it’s going to happen,” Brutti said. “We’re being very cautious about the risk that we take and how we plan for it.”
Those plans involve a base scenario where trends continue as expected, and a stress scenario in which those macroeconomic factors result in losses in a downturn, he said. In either case, Hyundai Capital America feels it is prepared and can ask itself, “How many more losses are we going to take and how much can we afford to take?” Brutti added.
Like This Post