Cox Automotive reported that credit access improved in March, even within the subprime space.

However, Open Lending Corp. still has notable concerns about the sector stemming from findings contained in a new Near- and Non-Prime Consumer Update.

The risk analytics solutions provider for financial institutions said its latest research uncovered disproportionate economic impacts on the underserved, spotlighting opportunities for automotive finance companies to drive vehicle accessibility.

Open Lending cautioned that near- and non-prime consumers are at risk of being priced out of the automotive market entirely. Key findings from its latest study included:

—Used near- and non-prime registrations are down double digits year-over-year: Near- and non-prime registrations declined 10% in 2023, while prime and super-prime stayed flat.

—Vehicle prices may be starting to come down, but monthly payments are not: While the average vehicle price dipped year-over-year in Q4 2023, the average monthly payment rose, with near- and non-prime consumers taking on a larger payment hike than prime and super-prime consumers.

—Electric vehicles may be starting to become accessible to consumers outside of prime: New near- and non-prime EV registrations grew 161%, and used EV registrations saw almost 100% growth year-over-year in the fourth quarter.

—Near- and non-prime consumers are showing a renewed interest in leasing, likely as a means to offset high interest rates and monthly payments.

“The economy is slowly improving, but high vehicle prices and interest rates are putting lower-credit consumers in a tough position, where access to personal transportation is often prohibitively expensive,” said Kevin Filan, senior vice president of marketing at Open Lending and among the speakers scheduled to appear during next week’s Auto Intel Summit + National Remarketing Conference hosted by Cherokee Media Group in Cary, N.C.

“Data shows there is more to these consumers’ borrowing potential than their credit scores show,” Filan continued. “By bringing them loan opportunities they can afford at a time of macroeconomic difficulty, automotive lenders can secure a stronger future for the automotive industry. Using AI-powered risk analysis and bolstered by default insurance, our Lenders Protection loan decisioning engine allows you to do just that.”

The entire update can be downloaded via this website.