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AFRS: Elevated car values could spur origination risks, affordability concerns

Rising vehicle values have been an upside in the short term, but could be a risk if market conditions shift

Joey Pizzolato

Soaring vehicle values have decreased loan-to-value ratios on lenders’ portfolios and increased recovery rates in the short term, but could spark new origination risks in the near term if prices drop and borrowers find themselves underwater, Landon Starr, chief risk officer at subprime lender Arivo Acceptance, said at the Auto Finance Risk Summit on Tuesday. […]

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