Competition is starting to shift out of low gear.
After turning the corner on capital constraints and economic distress, the auto finance sector is gaining momentum. Lenders will feel pressure to reach into deeper credit tiers and relax underwriting standards to grow volume.
Those were some of the core findings in the Auto Finance Forecast Fall 2010, an exclusive survey conducted by Auto Finance News and sister web site AutoFinanceNews.net. The Auto Finance Forecast gauges activities and sentiments in the automotive lending and leasing market.
“Competition will slowly come back,” wrote one finance company respondent. “Be aware of the return of loose credit practices.”
With rivalry heating up, advance rates, leasing, and incentive spending will all be driven higher, lenders predicted.
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