Impact of Unsettled Vehicle Values on Lenders and Consumers

From supply chain challenges to historically high auto prices, the pandemic had a significant impact on the auto market — which continues to rapidly evolve. With vehicle values now expected to come down, lenders should be prepared to monitor the market as it contends with high originating loan-to-value (LTV) ratios and consumers facing affordability challenges.

A newly released TransUnion study explores this anticipated change based on the impact equity positions and depreciation have had on loan performance in recent years. Read our guide to learn:

• The correlation between vehicle depreciation and delinquencies
• Which borrowers are most affected by rising LTVs
• How vehicle values are likely to look moving forward
• What you can do to successfully optimize each phase of the vehicle financing lifecycle