Prepare for “Interesting Times”

These are “interesting times” for the vehicle financing / servicing industry. The market, like the economy in general, went through various gyrations due to the COVID-19 pandemic, but is currently at an all-time high $1.4 trillion. Despite high unemployment, serious delinquencies remain relatively low, and the share of deep subprime debt is trending down. Will this continue? Or will more pressure be put on household balance sheets with the end of housing-related forbearances and moratoriums? Meanwhile, states continue to broaden consumer protection, restrict the use of vehicle disabling technology and require new post-repossession notifications.