As the third quarter of 2020 ended, it also marked eight months of the COVID-19 pandemic. It’s had an undeniable impact on the automotive industry, but much like previous downturns, the industry remains resilient. That said, there are many ways in which the pandemic is unique compared to other significant events. As a result, it’s difficult to try and forecast outcomes by looking at historical data. Instead, lenders should pay attention to current data and trends to inform the most strategic decisions.
Lenders should continue to pay close attention to how trends develop over the next few quarters to ensure they are making strategic decisions.
As we look at the automotive finance market in Q3 2020, there were a number of notable statistics that can help lenders identify trends and inform strategy, including subprime originations at record lows, leasing coming closer to expected levels, prime consumers shifting back to used vehicles, and delinquency rates seeing year-over-year drops. Here’s a breakdown of why these trends matter.