Retail Auto Loans Market Color
- Prime auto finance is a relatively mature market, with generally tight margins and standardized pricing.
- Subprime auto finance is typically more diverse in asset quality, with general collateral pricing based on borrower credit and the extended product (e.g. term, LTV).
- Auto loans are typically three to seven years in length with fixed rates.
- Performance of prime auto loans is generally predictable.
- Performance of subprime auto loans generally vary depending on borrower credit and product type.
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