Near- and Non-Prime Consumers Planning to Buy Used after 56% Jump in New Vehicle Payments, Open Lending Research Finds
Annual survey provides insights for automotive lenders on vehicle ownership barriers facing underserved consumers
Open Lending Corporation (NASDAQ:LPRO) ("Open Lending" or the "Company"), an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, has released its 2025 Vehicle Accessibility Report. The report highlights how credit scores impact consumers in their pursuit of an auto loan and vehicle ownership, as well as how unpredictable market shifts are reshaping vehicle purchasing behavior. For automotive lenders, these changes are a call to adopt a customer-centric approach to automotive lending, prioritizing fairness, flexibility and speed in their service to each borrower.
In a market defined by surging demand and limited supply, the report found that rising costs and shifting consumer behaviors are creating new challenges in automotive financing. While higher-credit borrowers benefit from longer loan terms, those with lower credit continue to face hurdles like affordability and limited access to credit.
Based on survey results from 1,001 U.S.-based adults across generations and credit segments, key findings from the report include the following:
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The cost of vehicle ownership has risen across the board. Underserved consumers are being hit hard. Near- and non-prime borrowers have seen a 56% increase in the median monthly payments for new vehicles from pre-pandemic (2017-2019) to today (2023-2024).
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Consumers who receive a loan decision in seconds are more likely to return to the same lender, with Gen Z consumers showing higher loyalty than any other generation. 71% of those who received instant loan decisions said they were highly likely to return to the same lender for future financial needs. One-third of Gen Zers prefer financing through their home bank or credit union compared to 30% of Millennials and 26% of Gen X and older respondents.
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Early loan payoff remains a key financial goal for vehicle owners, motivated by stability and upgrade potential. Sixty-one percent of vehicle owners plan to pay off their loans early, and 84% believe early loan payment improves their ability to upgrade or replace their existing vehicle.
- Consumer confusion continues to be an issue in automotive lending, signaling an opportunity for better customer engagement and education. One-quarter of consumers find it confusing to find the right vehicle and the right lender. While near- and non-prime consumers show high trust in their banks and credit unions, they express lower trust in dealerships when it comes to securing honest and reasonable terms on automotive loans.
"Automotive lenders are facing a delicate balancing act to meet rising consumer demand while addressing affordability challenges," said Kevin Filan, SVP of Marketing at Open Lending. "At the same time, consumers' priorities are changing with more borrowers focusing on paying off their loans early, improving their credit scores, and establishing long-term financial stability. For financial institutions, this is an opportunity to build trust and loyalty through a focus on fast, fair, flexible and flawless lending. Using lending enablement solutions and technology like our Lenders Protection™ platform allows lenders to make faster, smarter decisions, helps them provide greater access to more affordable financing and is critical to creating lasting customer relationships that drive sustainable business growth."
Access the full 2025 Vehicle Accessibility Report here.
To learn more about Open Lending, visit openlending.com, or visit booth #139 at America's Credit Unions' annual Governmental Affairs Conference in Washington, D.C., March 2-6, 2025.
About Open Lending
Open Lending (NASDAQ:LPRO) provides loan analytics, risk-based pricing, risk modeling, and default insurance to auto lenders throughout the United States. For over 20 years we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.
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