Softened sales during the first quarter also dragged eContracting activity, but experts remain upbeat about how much the digital component is aiding automotive financing and retailing.

On Tuesday, Wolters Kluwer Compliance Solutions released its Q1 Auto Finance Digital Transformation Index. While new-car sales fell approximately 7% year-over-year in Q1, Wolters Kluwer’s eContracting volume declined only 1.50%.

Wolters Kluwer called the development “a testament to the resilience of digitally-enabled lenders.”

Other key findings about eContracting from the Q1 index included:

—Quarter-over-quarter trend: eContracting volume decreased 1.15%, while broader new-vehicle unit sales fell approximately 6.5% during the first quarter, according to Cox Automotive.

—Year-over-year growth: A 1.50% decrease was observed for eContracting, dramatically outperforming the broader market’s approximately 7% new-vehicle sales decline for the same period, according to JD Power.

—Long-term adoption: The four-year Wolters Kluwer trend continues to show substantial digital adoption growth of 61.4% since Q1 2022.

Meanwhile, Wolters Kluwer indicated digital securitization activity posted a strong quarter-over-quarter increase in Q1, bolstered by a year-over-year increase in credit union participation and continued issuer adoption of digital-first workflows.

Here are more details:

—Quarter-over-quarter surge: Digital securitization transactions increased 10.49%, even as S&P Global is forecasting a 4% drop in total auto ABS issuance for the full year due to projected lower vehicle sales.

—Credit union adoption: Based on Wolters Kluwer’s own transaction data, credit union engagement in digital auto securitization has become a meaningful new growth channel in Q1 2026, with the company working with more automotive credit unions that have already completed or committed to digital securitizations this year and some planning multiple issuances.

—Subprime ABS performance: Analysts noted that securitized auto delinquencies showed sequential improvement in February as tax refunds rolled in, though levels remained elevated relative to pre-pandemic norms.

“While rising subprime delinquency headlines persist, it is important to note that subprime auto ABS structures are designed to absorb significant performance stress, and digitization continues to be a key tool for providing the transparency and data integrity investors require during periods of heightened scrutiny,” Wolters Kluwer said.

—Four-year trend: Long-term digital adoption for securitizations remains up 12.65% since Q1 2022, according to Wolters Kluwer.

Matthew Babcock oversees digital lending product strategy for Wolters Kluwer.

“The first quarter is a compelling story of digital resilience in the face of real market headwinds,” Babcock said in a news release. “New-vehicle sales fell roughly 7% year-over-year, yet our eContracting volume declined only 1.5%, a clear signal that digitally enabled lenders are better positioned to weather market volatility.

“On the securitization side, digital transactions surged more than 10% this quarter, even as overall market issuance is forecasted to drop,” he continued. “This growth highlights how digitization has become a critical tool for providing the transparency and data integrity investors require, especially as the market navigates a shifting lending environment.

“The foundation being built today through digital documentation and standardized workflows will define which institutions lead in the years ahead,” Babcock went on to say.

For more information about Wolters Kluwer, visit www.wolterskluwer.com.