The 2024 Must-Have Non-Prime Automotive Financing Survey Report
Get ready to dive into the most comprehensive and engaging industry data– the 2024 Non-Prime Auto Financing Survey Report! If you’re involved in the non-prime auto financing sector, you won't want to miss out on this essential guide packed with key trends, intriguing insights, and actionable strategies.
Why This Report is a Game-Changer
In the past two years, the non-prime auto financing world has experienced remarkable shifts. From market dynamics to the surge in automation and digitization, staying on top of these changes is crucial. That’s where the 2024 Non-Prime Auto Financing Survey Report comes in. Presented by the National Automotive Finance (NAF) Association and the American Financial Services Association (AFSA), this report is your go-to resource for understanding the latest trends and navigating the evolving landscape.
What’s Inside?
The report delves into the performance of the non-prime auto finance industry over recent years, based on a thorough survey of 24 financial institutions. It’s enriched with data from the Federal Reserve Economic Data (FRED), Equifax consumer credit records, and Black Book's vehicle values. Plus, it’s visually appealing, featuring a plethora of charts, graphs, and visuals that make complex data easy to digest.
Key Findings from 2022-2023:
1. Originations:
- Market Shifts: Non-prime originations have declined despite overall portfolio growth.
- Competitive Landscape: Credit unions have lost significant market share.
- Loan Dynamics: Decreased average amount financed and loan terms, with increased APRs and monthly payments.
- Consumer Behavior: More vehicles are financed through direct channels.
- Future Expectations: Fewer stakeholders expect heightened competition, but over half foresee up to 25% growth by expanding territories and dealer networks.
2. Automation and Digitization:
- Efficiency Gains: Rise in auto-decisioned and auto-declined applications.
- Enhanced Transactions: Increased use of automated stipulations and eSignatures.
3. Loss Management:
- Challenges: Higher delinquency, default rates, and charge-offs.
- Strategic Response: Adoption of cradle-to-grave collection strategies, though deficiency balance recoveries have decreased.
4. Talent Management:
- Attracting Talent: Companies are offering better health benefits, work-from-home options, and food services to stay competitive.
5. Costs and Returns:
- Increased Costs: Higher application and contract funding costs, alongside a rise in the cost of funds.
- Financial Performance: Decreased return on average assets and equity due to heightened risk.
6. Macroeconomic Context:
- Market Fluctuations: Vehicle sales, prices, and inventory levels continue to fluctuate, impacting risk models.
7. Used Vehicle Market Dynamics:
- Depreciation Trends: Accelerated depreciation of wholesale and retail prices expected to persist.
Why You Need This Report
By purchasing the 2024 Non-Prime Auto Financing Survey Report, you’ll gain:
- In-Depth Analysis: Insights into originations, automation, loss management, talent management, and financial metrics.
- Actionable Insights: Tools to make informed decisions and stay ahead of the competition.
- Strategic Opportunities: Adapt to market changes and optimize your operations.
- Visual Data Representations: Easy-to-understand visuals to simplify complex information.
Whether you’re a financial institution, service provider, or industry enthusiast, this report is invaluable for guiding strategic decisions and enhancing operational efficiency.
Don’t Miss Out!
Stay informed, prepared, and ahead of the curve. Secure your copy of the 2024 Non-Prime Auto Financing Survey Report today!