visimoney
In a challenging market for auto finance, USAA is “cherry-picking” certain vehicle types to finance while competing with captive lenders. Mark Pregmon, VP of consumer lending at USAA, said the bank is focusing on luxury cars and used vehicles that the captives are not subventing. USAA is maintaining its market share in a smaller pie, but is unable to compete with the low rates offered by captives. USAA saw a 15% YoY growth in total auto loan production for new and used vehicles in 2023, and is integrating a new loan origination system. The lender’s delinquency rates are trending better than pre-COVID, and its average loan term is 67 months.
USAA is “cherry-picking” certain vehicle types to finance while competing with the captives, according to Mark Pregmon, VP of consumer lending at the bank. The bank is focusing on luxury cars and used vehicles that captives aren’t subventing.
USAA is “maintaining our market share, but it’s a much smaller pie,” Pregmon said. The bank experienced a 15% YoY growth in total auto loan production for new and used vehicles in 2023. Despite subvented financing, car prices and interest rates remain elevated and affordability is a concern for consumers.
USAA’s delinquency rates are trending better than pre-COVID, and its average loan term is 67 months. The bank is integrating a new loan origination system to streamline the mobile application and funding processes.
