Auto lending and Prosper, one of the leading peer-to-peer lending sites, apparently don’t mix.
In a new report on its lending risk management, Prosper says that just 6% of its loans are being taken to purchase cars.
About $21 million of loans have been originated through Prosper over the last 12 months. About a year ago Prosper exited an SEC-mandated quiet period that lasted several months and during which the site was not permitted to originate loans.
I can’t say I am surprised that P2P lending is not a perfect fit for auto finance, but the portfolio details from Prosper are worth a look.
