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Home » Lower rates boost vehicle affordability but subprime defaults climb

Lower rates boost vehicle affordability but subprime defaults climb

83.7% of recent auto loan defaults were in deep subprime 

Amanda HarrisbyAmanda Harris
March 26, 2026
in Risk Management
Reading Time: 6 mins read
0
Customers shop for used vehicles at a dealership in Louisville, Kentucky.

Photo: Bloomberg

Auto lenders are offering competitive interest rates and shifting their lending strategies to help customers even as vehicle affordability improves.   Affordability is top of mind for auto lenders of every type, John Thacker, president of private label captive finance at Chase Auto, told Auto Finance News. “We’re all talking about it,” he said, noting that the challenges have prompted a shift toward used vehicles, longer-term […]

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