The auto finance industry strengthened in January driven, in part, by a more favorable capital market for auto finance assets.
The Auto Finance Composite Index, a new dataset developed by Auto Finance News and made public today, indicates that the auto finance industry improved in January. The index rose to 127.73 in January compared with 103.94 in December 2023 and 129.78 in January 2023, indicating the auto finance industry’s performance was stronger sequentially but slightly weaker year over year.
The new Auto Finance Composite Index determines the health of the auto finance industry by analyzing a composite of eight datasets weighted as an all-encompassing benchmark for industry performance. The datasets include the SAAR, auto loan rejection rates, relevant equity stock data and auto finance outstandings. The index was launched as part of the Big Wheels Auto Finance Data, revised to encompass a wide range of data crucial to the auto finance industry.
One aspect of the market driving the Auto Finance Composite Index higher in January was increased auto securities issuance, an indicator of investor demand for auto finance assets and investments. About $18.4 billion in deals were issued in January compared with just $2.4 billion in issuance in December. Countering that was vehicle sales, which declined in January, according to the Index.
Data used for the index goes back 10 years.
The Index is part of an overhaul of the Big Wheels Auto Finance Data report, which includes nearly two dozen datasets broken down into five dashboards to serve as a resource for executives monitoring the auto finance industry.
Big Wheels, which continues to offer the definitive ranking of auto finance lenders and lessors since 1999, provides a strategic view of market trends and performance dynamics with in-depth market metrics and a detailed analysis of originations, risk assessments, underwriting practices and performance indices.
For more information about Big Wheels, click here.
