Near- and Non-Prime Consumers Continue to Face Barriers in the New and Used Vehicle Markets, Open Lending Research Finds
Open Lending (NASDAQ: LPRO) has released its quarterly Near- and Non-Prime Consumer Update for Q1 2024, focusing on automotive lending trends. Key findings reveal that near- and non-prime consumers continue to face challenges in the vehicle market, particularly in the used sector. While prime and super-prime borrowers saw increases in vehicle registrations, near- and non-prime borrowers experienced a 6% decrease in used vehicle registrations and only a 1% increase for new vehicles.
The report highlights regional disparities in vehicle affordability, with used vehicle prices up 6% in the Southeast and new vehicle prices up 5% in the West. The Honda Civic and Ford F-Series remain the top-registered new and used vehicles, respectively, among near- and non-prime borrowers. Open Lending emphasizes the opportunity for lenders to serve this vital consumer segment using alternative data, advanced risk analysis, and default insurance.
Open Lending (NASDAQ: LPRO) ha rilasciato il suo aggiornamento trimestrale sui consumatori Near- e Non-Prime per il Q1 2024, concentrandosi sulle tendenze del prestito automobilistico. I risultati chiave rivelano che i consumatori near- e non-prime continuano ad affrontare sfide nel mercato dei veicoli, in particolare nel settore dell’usato. Mentre i prestatori prime e super-prime hanno visto un aumento delle registrazioni di veicoli, i prestatori near- e non-prime hanno registrato un diminuzione del 6% nelle registrazioni di veicoli usati e solo un incremento dell’1% per i veicoli nuovi.
Il rapporto evidenzia disparità regionali nell'affordabilità dei veicoli, con i prezzi dei veicoli usati aumentati del 6% nel Sud-est e i prezzi dei veicoli nuovi aumentati del 5% nell'Ovest. La Honda Civic e il Ford F-Series rimangono i veicoli nuovi e usati più registrati, rispettivamente, tra i prestatori near- e non-prime. Open Lending sottolinea l'opportunità per i prestatori di servire questo segmento di consumatori vitale utilizzando dati alternativi, analisi del rischio avanzate e assicurazione contro i default.
Open Lending (NASDAQ: LPRO) ha lanzado su actualización trimestral sobre consumidores Near- y Non-Prime para el primer trimestre de 2024, enfocándose en las tendencias de préstamos automotrices. Los hallazgos clave revelan que los consumidores near- y non-prime continúan enfrentando desafíos en el mercado de vehículos, particularmente en el sector de vehículos usados. Mientras que los prestatarios prime y super-prime vieron aumentos en el registro de vehículos, los prestatarios near- y non-prime experimentaron una disminución del 6% en los registros de vehículos usados y solo un incremento del 1% para vehículos nuevos.
El informe destaca disparidades regionales en la asequibilidad de vehículos, con precios de vehículos usados aumentando un 6% en el Sureste y precios de vehículos nuevos aumentando un 5% en el Oeste. La Honda Civic y la Ford F-Series siguen siendo los vehículos nuevos y usados más registrados, respectivamente, entre los prestatarios near- y non-prime. Open Lending enfatiza la oportunidad para los prestamistas de atender este segmento vital de consumidores utilizando datos alternativos, análisis de riesgos avanzados y seguros contra incumplimientos.
오픈 렌딩 (NASDAQ: LPRO)이 2024년 1분기 차량 대출 트렌드에 초점을 맞춘 근-프라임 및 비-프라임 소비자 업데이트를 발표했습니다. 주요 결과는 근-프라임 및 비-프라임 소비자들이 차량 시장에서 계속 어려움을 겪고 있음을 보여줍니다, 특히 중고차 부문에서 그렇습니다. 프라임 및 슈퍼 프라임 대출자는 차량 등록이 증가한 반면, 근-프라임 및 비-프라임 대출자는 중고차 등록이 6% 감소했으며 신차는 1% 증가에 그쳤습니다.
보고서는 차량 가격에 대한 지역적 불균형을 강조하며, 남동부에서 중고차 가격이 6% 상승하고 서부에서 신차 가격이 5% 상승했습니다. Honda Civic과 Ford F-Series는 각각 근-프라임 및 비-프라임 대출자들 사이에서 가장 많이 등록된 신규 및 중고차로 남아 있습니다. 오픈 렌딩은 대출자들이 대체 데이터, 고급 리스크 분석 및 채무불이행 보험을 사용하여 이 중요한 소비자 세그먼트를 서비스할 기회를 강조합니다.
Open Lending (NASDAQ: LPRO) a publié sa mise à jour trimestrielle sur les consommateurs Near- et Non-Prime pour le premier trimestre de 2024, en mettant l'accent sur les tendances en matière de prêts automobiles. Les principales conclusions révèlent que les consommateurs Near- et Non-Prime continuent de faire face à des défis sur le marché des véhicules, en particulier dans le secteur des véhicules d'occasion. Tandis que les emprunteurs Prime et Super-Prime ont constaté une augmentation des immatriculations de véhicules, les emprunteurs Near- et Non-Prime ont connu une diminution de 6 % des immatriculations de véhicules d'occasion et seulement une augmentation de 1 % pour les véhicules neufs.
Le rapport souligne les disparités régionales en matière d'accessibilité des véhicules, avec les prix des véhicules d'occasion augmentant de 6 % dans le Sud-Est et les prix des véhicules neufs augmentant de 5 % dans l'Ouest. La Honda Civic et la Ford F-Series restent les véhicules neufs et d'occasion les plus immatriculés, respectivement, parmi les emprunteurs Near- et Non-Prime. Open Lending souligne l'opportunité pour les prêteurs de servir ce segment de consommateurs essentiel en utilisant des données alternatives, une analyse des risques avancée et une assurance contre les défauts.
Open Lending (NASDAQ: LPRO) hat sein vierteljährliches Update für Near- und Non-Prime Verbraucher für das 1. Quartal 2024 veröffentlicht, das sich auf Trends im Bereich der Auto-Finanzierung konzentriert. Die wichtigsten Erkenntnisse zeigen, dass Near- und Non-Prime Verbraucher weiterhin Herausforderungen im Fahrzeugmarkt gegenüberstehen, insbesondere im Gebrauchtwagenbereich. Während Prime- und Super-Prime-Kreditnehmer einen Anstieg der Fahrzeugregistrierungen verzeichneten, erlebten Near- und Non-Prime-Kreditnehmer einen Rückgang der Gebrauchtwagenregistrierungen um 6% und nur einen Anstieg von 1% bei Neufahrzeugen.
Der Bericht hebt regionale Unterschiede in der Fahrzeugerwerbsfähigkeit hervor, wobei die Preise für Gebrauchtwagen im Südosten um 6% und die Preise für Neuwagen im Westen um 5% gestiegen sind. Der Honda Civic und die Ford F-Serie bleiben die am häufigsten registrierten neuen und gebrauchten Fahrzeuge unter Near- und Non-Prime-Kreditnehmern. Open Lending betont die Möglichkeit für Kreditgeber, dieses wichtige Verbrauchersegment mithilfe alternativer Daten, fortschrittlicher Risikoanalysen und Ausfallversicherungen zu bedienen.
- Release of quarterly data report on near- and non-prime automotive lending trends, providing valuable market insights
- Opportunity for auto lenders to serve near- and non-prime consumers, potentially leading to member growth and higher yields
- 6% decrease in used vehicle registrations among near- and non-prime borrowers
- Challenges for near- and non-prime consumers due to tightening credit availability, high interest rates, and vehicle prices
- Regional disparities in vehicle affordability, potentially impacting market reach
Insights
The report highlights persistent challenges for near- and non-prime consumers in the automotive market, which could impact lenders and automakers. Key points include:
- Vehicle registrations for near- and non-prime borrowers decreased by
6% for used vehicles and increased only1% for new vehicles, compared to higher growth rates for prime borrowers. - Regional disparities in vehicle affordability, with used vehicle prices up
6% in the Southeast and new vehicle prices up5% in the West. - Continued preference for Honda Civic (new) and Ford F-Series (used) among near- and non-prime borrowers.
These trends suggest a potential slowdown in sales to this consumer segment, which could affect automotive lenders and manufacturers. Lenders may need to innovate their risk assessment methods to tap into this market effectively while managing default risks.
The report's findings have implications for the automotive finance sector and related industries:
- Tightening credit availability and high interest rates are constraining near- and non-prime borrowers, potentially reducing loan volumes for lenders focused on this segment.
- The disparity in vehicle registration growth between prime and near-/non-prime borrowers suggests a widening gap in market access, which could lead to increased demand for alternative financing options.
- Regional price variations indicate opportunities for targeted lending strategies in different geographical areas.
Lenders and fintech companies offering innovative risk assessment tools, like Open Lending, may see increased demand as traditional lenders struggle to serve this market segment profitably.
The report reveals significant trends affecting the automotive industry:
- The used vehicle market is particularly challenging for near- and non-prime consumers, which could lead to extended vehicle ownership cycles and impact the overall market dynamics.
- Regional price disparities suggest supply chain issues may still be affecting certain areas more than others, potentially influencing manufacturer distribution strategies.
- Continued popularity of specific models (Honda Civic, Ford F-Series) among near- and non-prime borrowers indicates strong brand loyalty and could inform marketing and production decisions.
Automakers and dealers may need to adapt their strategies to address affordability concerns and maintain sales volumes in the near- and non-prime segments, possibly through enhanced certified pre-owned programs or flexible financing options.
Lending enablement provider releases quarterly data report on near- and non-prime automotive lending trends, regional vehicle preferences
Using AutoCreditInsightTM data, the report offers insight into the opportunity for auto lenders to serve near- and non-prime consumers, a vital audience segment for financial institutions seeking member growth and greater yields in their auto lending portfolio. Key findings include the following:
-
In the used vehicle market, low inventory and high prices are disproportionately impacting near- and non-prime borrowers nationwide. In the first quarter of 2024, vehicle registrations among prime and super-prime borrowers increased by
3% for used and7% for new compared to the first quarter of 2023. Meanwhile, vehicle registrations among near- and non-prime borrowers decreased by6% for used and climbed just1% for new. -
Near- and non-prime borrowers are also facing regional differences in vehicle affordability. Average used vehicle prices are up
6% in Southeast, and average new vehicle prices are up5% in the West, while the rest of the country has remained relatively flat for new and used. - The Honda Civic remains the top-registered new vehicle and Ford F-Series the top-registered used vehicle among near- and non-prime borrowers.
“Although the automotive market shows signs of stabilizing, near- and non-prime consumers remain challenged in the used vehicle market. This is due to tightening availability of credit, persistently high interest rates and vehicle prices, and increased ownership and insurance costs,” said Kevin Filan, SVP of marketing at Open Lending. “Regardless of credit score, most Americans need reliable vehicles to access good jobs, care for their families, and climb the credit ladder. The automotive lenders who use alternative data, advanced risk analysis and default insurance are better equipped to identify the reliable, underserved near- and non-prime borrowers who will happily exchange their loyalty for more personalized loan pricing.”
For more insights, access the full report.
Methodology
Data was sourced from AutoCreditInsight™, a business intelligence tool developed by TransUnion in partnership with S&P Global Mobility, looking at newly registered vehicles in the new and used categories through the first quarter of 2024. Registrations that did not have a VantageScore®4.0 associated with the record were excluded. Open Lending defines near- and non-prime as a VantageScore®4.0 in the 560 to 699 credit range and prime and above as a VantageScore®4.0 greater than or equal to 700.
About Open Lending
Open Lending (NASDAQ: LPRO) provides loan analytics, risk-based pricing, risk modeling, and default insurance to auto lenders throughout
View source version on businesswire.com: https://www.businesswire.com/news/home/20240827732711/en/
Media Inquiries
press@openlending.com
Investor Relations Inquiries
openlending@icrinc.com
Source: Open Lending Corporation
FAQ
What were the key findings of Open Lending's Q1 2024 Near- and Non-Prime Consumer Update for LPRO?
How did vehicle registrations for prime and super-prime borrowers compare to near- and non-prime borrowers in Q1 2024 for LPRO?
What were the top-registered vehicles among near- and non-prime borrowers according to Open Lending's LPRO report?
How can automotive lenders better serve near- and non-prime consumers according to Open Lending (LPRO)?
