Non-prime auto underwriting: Evolving for a changing market

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As the economy begins its slow recovery, automotive finance companies now face a new business landscape. To help navigate this challenging and sometimes unfamiliar road, PwC is publishing a series of papers that will explore important topics affecting the industry now and in the future.

In our latest paper, we discuss how the economic crisis left behind a large and growing segment of non-prime borrowers — a key constituency for many auto lenders. Yet traditional underwriting alone is not a reliable indicator of creditworthiness for these borrowers whose newly-blemished credit reports may not translate into a significantly elevated or longer-term credit risk. This paper explores how lenders can develop a more nuanced credit decision process to identify which non-prime borrowers align with their risk tolerance parameters.

For more information, please contact any of the individuals listed at the back of the publication.