Open Lending Corporation released a new Near- and Non-Prime Consumer Brief, the latest installment in its quarterly series of data reports on vehicle registrations. The report found that, despite continued challenges in the vehicle market, new-vehicle registrations have risen and used vehicle registrations have stabilized in the past year, though supply remains below pre-COVID levels. Limited used vehicle inventory and high interest rates continue to impact buyers, creating pent-up demand among near- and non-prime consumers.
Using AutoCreditInsight data from Q2 2024, 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:
“While the automotive market continues to show signs of recovery, the cost of a vehicle is still a strain for many near- and non-prime credit buyers who rely on used vehicle inventory, which continues to sit below pre-Covid levels. But pent-up demand now could mean better used vehicle options in 2025, as decreasing interest rates prompt buyers to sell or trade in their current vehicles,” said Kevin Filan, SVP of marketing at Open Lending.