Q4 Near and Non-Prime Consumer Update

Vehicle ownership is getting further out of reach for consumers with below-prime credit scores. Understanding the lending habits of the near and non-prime consumer segment (those with a credit score below 659) is critical to reaching more borrowers and delivering the most accurate lending decision.

In Open Lending’s latest Near and Non-Prime Consumer Update Report, we look at recent data on near and non-prime consumer vehicle preferences and lending habits. We found that near and non-prime car originations declined in 2023, a trend influenced by interest rate hikes. We also determined that near and non-prime consumers strongly prefer two specific automotive brands and models when purchasing new and used vehicles.

While these trends illustrate the uphill battle near and non-prime consumers face when purchasing a vehicle and securing financing, they also provide critical insights to inform automotive lending decisions. Staying in-tune with the underserved near and non-prime segment enables automotive lenders to serve more deserving borrowers with less risk and remain competitive in an increasingly crowded market.

Check out the report and see all our findings on the near and non-prime consumer segment.

Insights presented in this report are sourced using proprietary data from Open Lending as well as TransUnion and S&P Global’s AutoCreditInsight™.