To read the full post, head to https://www.ocrolus.com/blog/auto-loan-market-reveals-underlying-trends-in-consumer-lending/

Cars and credit are two of my favorite topics.  Last week, I spoke to Ed Garsten at Forbes to share thoughts on tightening underwriting standards in auto finance, along with the deeper trends driving evolution in consumer credit more broadly.  Amidst higher delinquency rates, uncertainty around post-pandemic consumer financial health, and the growing insufficiency of traditional underwriting methods, auto lenders have tightened their criteria for new borrowers, and new origination has decreased. The implications of this trend are not limited to the automotive industry.  All forward-thinking consumer lenders will need to revamp their underwriting practices, with an emphasis on broader data sources, real-time information, and more segmented and personalized assessment strategies.