The lending landscape today is not the same as it was in 2007 — both because lenders generally have a reduced appetite for risk and because regulatory scrutiny has increased. Like auto sales, the number of loans has been rising annually since 2009. What’s more, the percentage of loans going to subprime borrowers (scores below 640) has held steady for the last three years.
According to the Equifax Economic Trends Commentary, subprime auto lending is not creating “the next bubble,” as some have speculated. This detailed Trends Commentary examines data aggregated from the credit reports of more than 210 million consumers in the Equifax credit database to understand the current subprime auto market and its potential economic benefits. A careful review of the data fails to show any evidence of a bubble.
To learn more, visit our booth at the upcoming Auto Finance Summit – Booth #115.
