For the week ended April 12, wholesale auction volume totaled just 19,000, an 83 percent drop from the pre-virus weekly average, according to J.D. Power. Retail used-vehicle sales during the first 12 days of April for franchised dealers tumbled 63 percent vs. the same period in 2019. J.D. Power now forecasts used-vehicle prices to fall 7 percent through June before beginning to recover — though Jonathan Banks, vice president of vehicle valuations and analytics, notes the outlook is fluid and contingent on a gradual recovery in the back half of the year.
Auto finance companies that lend to the riskiest customers remained profitable last year. But their average results dropped 20 percent from the prior year, according to the National Automotive Finance Association’s 2015 Non-Prime Automotive Financing survey.
Two-thirds of the institutions polled reported that their results declined.
Even so, the value of U.S. portfolios of subprime loans on new and used vehicles grew for the fourth consecutive year, the association said. Read more…