Open Lending Extends Program to Older Vehicles to Support Today’s Car Buyer
February 09 2023 - 8:15AM
Business Wire
With the average age of vehicles financed
jumping from 5.4 to 6.4 years for FICO scores below 640, vehicle
age expansion enables auto loan growth in an uncertain market
Open Lending Corporation (NASDAQ: LPRO) (“Open Lending” or “the
Company”), an industry trailblazer in auto lending enablement and
risk analytics solutions for financial institutions, today
announced it has increased its allowable vehicle age from nine to
eleven years. Powered by Lenders Protection™, this increase in
vehicle age builds on Open Lending’s commitment to make car
ownership more accessible for those in near and non-prime credit
segments. The change also allows financial institutions to grow
their portfolios while maintaining protection through Open
Lending’s default insurance and risk management program.
Driven by pandemic-induced supply chain disruptions, vehicle
affordability issues have prompted many car shoppers to purchase
older vehicles. With Open Lending’s expanded vehicle age limits,
financial institutions can engage a wider range of borrowers by
offering risk-mitigated loans on longer terms for more used
vehicles at affordable price points.
“As chronic inflation and supply chain issues persist, Open
Lending is committed to supporting our lenders and serving
underserved borrowers,” said Chief Revenue Officer Matt Roe.
“Although used car prices have begun to recede from all-time highs
and record increases, valuations remain inflated. With our risk
mitigation offering, lenders can boost loan originations and seed
new borrower relationships — and borrowers, particularly those who
are underserved, are able to pursue better lives and careers
through car ownership. Under our new vehicle age terms, these
relationships can flourish even in constrained market
conditions.”
According to S&P Global data, car shoppers with FICO scores
below 640 are driving demand for financing on older vehicles: From
2020 to 2022, the average age of vehicles financed in this credit
segment jumped from 5.4 years to more than 6.4 years. In the coming
years, lenders can expect to see this trend continue.
“In today’s macroeconomic climate, buyers are happy to choose an
older vehicle if it means monthly payments that fit within their
household budget,” says Michael Higgins, AVP, Underwriting at Space
Coast Credit Union. “With Open Lending’s expanded product offering,
we now have a better chance of meeting the needs of our
members.”
Launched in 2003, Lenders Protection™ offers consolidated
analytics and insurance solutions to help credit unions, banks,
automotive finance and refinance companies, and OEM captive lenders
originate and insure near and non-prime auto loans. To learn more
about Open Lending and its Lenders Protection™ program, click
here.
About Open Lending Open Lending (NASDAQ: LPRO) provides
loan analytics, risk-based pricing, risk modeling and default
insurance to auto lenders throughout the United States. For over 20
years Open Lending has powered Lenders Protection™ to empower
credit unions, banks, automotive finance and refinance companies,
and OEM captive lenders to create profitable auto loan portfolios
by saying “yes” to more automotive loans. Open Lending has enabled
over 400 financial institutions to drive more than $16 billion in
risk-mitigated auto loan growth since its inception. For more
information, please visit www.openlending.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230209005276/en/
Alison Smith for Open Lending openlending@ink-co.com
Investor Relations Inquiries openlending@icrinc.com
Open Lending (NASDAQ:LPRO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Open Lending (NASDAQ:LPRO)
Historical Stock Chart
From Jul 2023 to Jul 2024