WASHINGTON, October 3, 2017–The non-prime automotive financing sector experienced the sixth consecutive year of market growth in 2016, according to the 2017 Non-Prime Automotive Financing Survey. Co-sponsored by the National Automotive Finance (NAF) Association and American Financial Services Association (AFSA), the survey is a benchmarking tool to identify trends in the industry.
Through the combined efforts of both associations, 54 companies participated in this year’s survey. This is the 21st year of the survey, started by NAF, and the third year both trade associations have teamed up as co-sponsors. This effort is thought to be the most comprehensive survey of the non-prime auto lending sector.
Over the past few years, significant improvements to the survey have been made. For example, an easier data gathering approach through a web survey and a new reporting format give the report broader and more comprehensive coverage and provides information that cannot be found anywhere else. Contributing to the report are TransUnion, FactorTrust and Black Book, providing additional market insight by supplying data and analysis on nonprime auto financing.
Key findings from the survey include:
- Sixth consecutive year of market growth
- Competition increases, pace slows
- Banks led market share development with positive gain in 2016
- Several indicators showed a trend towards improved quality including higher credit scores for new and used, decreases in payment-to-income, decreases in average annual net charge-off, and annualized repossession rate.
- Delinquency increases
- Operating expenses increase
- Profit reduction
Benchmark Consulting International administered the survey and provided the report analysis. Participating finance sources responded to survey questions covering topics such as originations, servicing, and loss management. The results are illustrated in 129 graphs.
The survey report is distributed at no cost to finance company participants. Others may purchase a copy of the report for $500. To purchase, contact Diane Merino at the National Automotive Finance Association at (717) 676-1533 or email Diane.firstname.lastname@example.org.
AFSA (www.afsaonline.org) is the national trade association for the consumer credit industry, protecting access to credit and consumer choice. Its 400 members include consumer and commercial finance companies, vehicle finance/leasing companies, mortgage lenders, card issuers, and industry suppliers.
NAF Association (www.nafassociation.com) is the only trade association exclusively serving the non-prime auto financing industry.
National Auto Finance Association (NAF Association)
Jack Tracey, Executive Director
Email: email@example.com Phone: 410-865-5431
American Financial Services Association (AFSA)
Jack Ferry, Vice President, Communications
Email: firstname.lastname@example.org Phone: 202-776-7308