Industry Analysis & Industry Trends
The Subprime Auto Loans industry is rebounding strongly from effects of the recession, but performance still remains below prerecessionary levels. New car sales, improving consumer finances and continued strong demand growth from subprime borrowers and investors are forecast to spur industry growth over the next five years. However, faster growth will be restrained by rising interest rates that will raise borrowing costs and slow vehicles sales.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Subprime Auto Loans industry is in the mature phase of its life cycle. Industry value added (IVA), a measure of the industry's contribution to the overall economy, is anticipated to grow at an annualized rate of 4.0% over the 10 years to 2019, compared to annualized GDP growth of 2.5%. When adjusted for the devastating effects of the recession, industry expansion has been roughly in line with overall economic growth, which is a strong indicator of a mature industry.
Demand for industry automotive financing moves in tandem with car sales, which move cyclically with overall economic growth. To this end, new car sales, which underpin demand for subprime financing, are expected to grow at an annualized rate of 4.9% from recessionary lows over the 10 years to 2019... purchase to read more