Auto originations continue to increase — particularly within prime categories. According to Experian’s latest State of the Automotive Finance Market report:
- Prime consumers grabbed the lion’s share of the total finance market, at 40.9%.
- Super-prime buyers showed the largest increase, reaching 20.2%.
- Consumers outside the prime category (credit score of 600 or lower) decreased to the lowest share on record since 2012.
- Credit unions and captive lenders increased market share of total vehicle financing, growing to 21% and 29.8% — an increase of 6.9% and 35.1%, respectively.
As auto loan originations continue their upward trend, lenders can stay ahead of the competition by using advanced analytics to target the right customers and increase profitability.