This week the auto lending industry saw the negative impacts of the coronavirus crisis put pressure on captives to maintain liquidity as major OEMs reported sales declines. Further, the fallout on the auto industry will likely result in declines for residual values and increase lenders’ credit losses.
The industry also saw the first subprime lender reduce its staff significantly and tighten its underwriting policies as vehicle sales and origination volumes plummet in the auto finance sector, as a result of the COVID-19 economic crisis.
In this editors’ roundtable, Nicole Casperson, Joey Pizzolato and JJ Hornblass, of the Auto Finance News editorial team, discuss news developments during the week ending April 3, and give some hints as to what Auto Finance News will cover in the forthcoming week.
