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Subprime Auto Loans in the US - Industry Market Research Report

Subprime Auto Loans

Over the five years to 2018, operators in the Subprime Auto Loans industry contended with rising interest rates and increasing delinquency rates, which took a toll on profit margins for many operators. Several small, specialized creditors have been pushed to bankruptcy due to diminishing profitability and a growing number of subprime auto loan delinquencies. Furthermore, during the five-year period, increasing interest rates increased borrowing costs for subprime consumers, slowing demand for industry financing to purchase vehicles and dampening profit margins for many lenders. Consequently, industry revenue is forecast to decline. Moving forward, growth will be restrained by rising interest rates, which will raise borrowing costs and slow vehicles sales. Additionally, interest rates are expected to increase to normalized levels over the five years to 2023. As interest rates rise, subprime consumers are expected to be less incentivized to finance purchases of large-item goods such as vehicles due to higher monthly interest payments.

Operators in this industry finance automobile purchases through loans and leases for subprime borrowers, defined as borrowers with a credit score below 620.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.


  • About this Industry
  • Industry at a Glance
    • Table Key Statistics Snapshot
    • Table Revenue vs. employment growth
    • Table Products and services segmentation (2018)
    • Table Industry Structure
  • Industry Performance
    • Table New car sales
    • Table Industry revenue
    • Table Life Cycle Stage
  • Products & Markets
    • Table KEY BUYING INDUSTRIES
    • Table KEY SELLING INDUSTRIES
    • Table Products and services segmentation (2018)
    • Table Major market segmentation (2018)
    • Table Business Locations 2018
    • Table Distribution of establishments vs. population
  • Competitive Landscape
    • Table Sector vs. Industry Costs
    • Table Barriers to Entry checklist
  • Major Companies
    • Table Major players
    • Table Credit Acceptance (US industry-specific segment) - financial performance*
    • Table Santander Consumer USA Inc. (US industry-specific segment) - financial performance*
    • Table Ally Financial Inc. (US industry-specific segment) - financial performance*
    • Table American Honda Finance Corporation (US industry-specific segment) - financial performance*
  • Operating Conditions
    • Table Capital Intensity
    • Table Tools of the Trade: Growth Strategies for Success
    • Table Volatility vs. growth
  • Key Statistics
    • Table Industry Data
    • Table Annual Change
    • Table Key Ratios
  • Jargon & Glossary

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