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Home » Used-vehicle loan LTVs, negative equity climb

Used-vehicle loan LTVs, negative equity climb

Average used LTV at origination reached 125% in Q1

Riley WolfbauerbyRiley Wolfbauer
June 26, 2023
in Risk Management
Reading Time: 3 mins read
0
Closeup of the back of a silver sedan sitting in traffic

© Can Stock Photo / Madrabothair

More consumers are prone to negative vehicle equity on used-vehicle loans on the heels of climbing loan-to-value ratios at the point of origination over the past two years, posing a risk of delinquencies.  The average loan-to-value (LTV) ratio on used-vehicle originations jumped to 125% in the first quarter of 2023, compared with 110% in Q1 […]

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Tags: delinquenciesloan to value ratioPremiumsubprimeTransUnionused vehicles
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