Open Lending Research Uncovers Near- and Non-Prime Consumers’ Automotive Financing Hopes and Doubts
23 1월 2024 - 10:15PM
Business Wire
Sixty-nine percent of near- and non-prime
consumers plan to pay off their loans early, with one-quarter of
2023 used car buyers spending more than $600 on their monthly car
payment
Open Lending Corporation (NASDAQ: LPRO) (“Open Lending” or the
“Company”), an industry trailblazer in automotive lending
enablement and risk analytics solutions for financial institutions,
has completed a study on vehicle accessibility and automotive
financing perceptions among near- and non-prime consumers. As high
interest rates and vehicle prices create affordability barriers,
the findings show how lower-credit consumers approach car ownership
and manage debt, highlighting opportunities for lenders to engage
creditworthy near- and non-prime consumers. The full report will be
released in February.
This year’s report builds on Open Lending’s 2023 Vehicle
Accessibility Index, which explored the barriers to vehicle
ownership and how owning a vehicle impacts consumers’ opportunities
and livelihoods. For 2024, the report digs deeper into the near-
and non-prime segment, which comprises consumers significantly
impacted by vehicle accessibility.
Open Lending surveyed 1,042 U.S.-based consumers who fall within
either the near-prime (i.e., credit score of 620-659) or non-prime
(i.e., credit score of 580-619) credit tier. Initial findings from
the survey include the following:
- Near- and non-prime consumers are proactive about managing
debt. Sixty-nine percent plan to pay off their loan early.
- Interest rate hikes and high vehicle prices are pushing
near- and non-prime consumers out of the market. Twenty-five
percent of near- and non-prime consumers are paying over $600 per
month for a used car they purchased in 2023, up from the 8% who
purchased one between 2020 and 2022.
- Generation Z near- and non-prime consumers are more
selective about automotive loans and reluctant to take on debt.
Sixty-one percent of those aged 18-42 have a term limit of 48
months or less, compared to just 42% of those aged 43-68.
“Near- and non-prime consumers have hesitations and doubts
around the automotive lending process, and that’s not something
lenders should simply accept,” said Matt Roe, Chief Revenue Officer
at Open Lending. “Financial institutions and lenders can garner
trust by making the process more transparent and accessible. By
analyzing broader, alternative data to measure creditworthiness,
lenders can offer loans to a more diverse pool of borrowers. And
when lenders have more data and information about their customers,
they can provide an experience that fosters continued loyalty.”
Open Lending has focused on the near- and non-prime consumer for
over two decades, resulting in deep expertise and experience in
this segment’s challenges and opportunities. Many near- and
non-prime consumers are creditworthy but overlooked by lenders,
creating a missed opportunity for financial institutions and
deserving borrowers. Through research and analysis, the Company
aims to empower automotive lenders to serve more consumers while
growing ROA and achieving yield targets.
Sign up here to receive the full report as soon as it
publishes.
To learn more about Open Lending, visit openlending.com.
About Open Lending
Open Lending (NASDAQ: LPRO) provides loan analytics, risk-based
pricing, risk modeling, and default insurance to auto lenders
throughout the United States. For over 20 years we have been
empowering financial institutions to create profitable auto loan
portfolios with less risk and more reward. For more information,
please visit www.openlending.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240123194356/en/
Alison Smith for Open Lending openlending@ink-co.com
Investor Relations Inquiries openlending@icrinc.com
Open Lending (NASDAQ:LPRO)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Open Lending (NASDAQ:LPRO)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024