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It’s that time again—time to breakdown the latest State of the Automotive Finance Market¹ report by Experian. Overall, the auto lending market was strong as 2019 came to a close. Total open loan balances reached $1.22 billion at the end of Q4, with the majority of lenders portfolios remaining deep subprime and prime.

The auto loan industry is massive and chances are that if you are a financial institution, you are also in the auto loan lending game. As a lender, knowing ways to maximize your automotive financing portfolio and extending loans to qualified borrowers is of the utmost importance. Having a solid pulse on the auto finance market can help increase your financial institution’s auto loan portfolio.

I look forward to CUDATA.COM’s statistics and trends report each quarter. It gives our team insights into what our industry is experiencing and how that will impact our clients and their members. 2018 ended on a high note, and we are seeing a strong start to 2019. Here are some notable KPIs from the report:

Everybody in lending knows that collateral recovery and vehicle repossessions are unpleasant and unenjoyable for all parties involved. Unfortunately, it's a part of business in auto lending. And as long as your financial institution and its staff are tracking collateral and assets, you'll encounter angry, hostile borrowers who will make asset collection as difficult as possible. Here are some tips for how to deal with hostile debtors when your financial institution staff, field agents, and repossession agents are trying to recover collateral.

When a Collateral Protection Insurance (CPI) program is implemented correctly, the program protects the lender and borrower in the event a customer fails to update their auto insurance status. As the Consumer Financial Protection Bureau (CFPB) continues to crack down on unsavory insurance tracking tactics by banks and underwriters, your financial institution should compare program options and determine if traditional CPI or Hybrid CPI is the better choice for your risk management strategy.

First things, first. We've all forgotten at some point in our lives where we've parked the car. As we get older, it doesn't get any easier, unfortunately. Unlike those 'dude, where's my car' moments, your borrowers may purposefully not want to be found as they skip out on their loan by missing payments.

Analyzing data is a critical component for planning for the future. CUData.com has recently released their Credit Union Industry Statistics and Performance Trends Report for Q2 2017. I'd like to share some highlights of the report with you and your financial institution. There's a lot of positives in the data below. Although the number of credit unions fell slightly, credit unions with $500M+ in assets grew slightly. Direct and indirect auto lending continues to be a bright spot and looks to be the greatest opportunity for growth for credit unions. We are also happy to see credit union membership continues to be on an upward trend. 

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 Reducing borrower noise and lowering CPI premiums resulted in the creation of Hybrid CPI

The largest asset that a lender has is their loan portfolio. In order to mitigate the risk caused by uninsured collateral, lenders have several options to choose from in loan risk management programs. Not all programs are the same, so, your financial institution needs to carefully review the program which best fits your needs, considering the collateral being financed, the make-up of the loan portfolio, and the amount of risk your team is willing to assume.

CUData.com recently released their Q3 2016 Credit Union Industry Statistics and Performance Trends report. This quarterly report includes valuable data and statistics for credit union leadership in an easily digestible format. The report contains comparative peer analysis and industry performance trends to assist executive leadership with their strategic planning initiatives and goal setting.