We’ve all heard the news on rising auto loan delinquencies. Since February, auto delinquencies in the subprime market are at their highest rate since 1996. This presents a significant issue since increased delinquencies usually indicate that more defaults will happen down the road. So what are auto finance professionals to do in times like these?
While it may be irresponsible to approve loan applications at higher velocities to borrowers with little or no credit, some auto lending businesses cannot afford to decelerate their loan application approval process, especially during an intensely competitive auto lending climate.