A quartet of industry executives took turns describing data contained in nearly 20 slides highlighting some of the top trends from 2023 Non-Prime Automotive Financing Survey that featured members of the National Automotive Finance Association and the American Financial Services Association.

After touching on trends involving the book-to-look ratio, collections and fraud, the final slide is what made the presenters and Non-Prime Auto Financing Conference attendees smile.

The survey results showed the positive impact that non-prime auto financing can have on consumers. The data indicated the median three-year increase in FICO score for deep subprime customers was 78 points.

The findings also noted that 21.31% of consumers with auto financing moved from a FICO score of below 550 to a reading above 640.

“This is huge. This is why I’m proud to be in this industry,” said the presenter who shared this particular data. It was Brett Collett, vice president of the auto lender vertical at Equifax.

While the climax of the June presentation in Plano, Texas, had that positive vibe, other survey findings showed some of the challenges faced by finance companies that specialize in non-prime auto paper.

For example, 45% of survey participants said competition was more aggressive, up from 34% a year earlier.

Also, the survey showed the percent return on average assets over 12 months softened from 8.9% to 5.1%.

Furthermore, when noting how long the vehicle repossession process increased or decreased in 2022, a plurality (42%) said there was no change. But 37% of respondents said the process has increased by three to four weeks.

Jody Lambert, vice president of dealer services at Anderson Brothers Bank, said that repossession trend stems from fewer repossession agencies remaining in business after the pandemic.

“We need to evaluate what we’re paying the agents. Their costs have gone up, too,” Lambert said.

The NAF Association said survey participants will receive a complimentary copy of a report containing all of the survey findings.

Other finance companies and industry executives can get the report by contacting the organization through its website at nafassociation.com.