Perhaps that older model included in the pitched paper from a dealership in your network now looks a little more appealing when viewed through the updated tool from Open Lending Corp.

Last week, the enablement and risk analytics solutions provider for financial institutions announced that it has increased its allowable vehicle age from 9 to 11 years.

Powered by Lenders Protection, the company said this increase in vehicle age builds on Open Lending’s commitment to make vehicle ownership more accessible for those in near and non-prime credit segments.

The company added the change also allows financial institutions to grow their portfolios while maintaining protection through Open Lending’s default insurance and risk management program.

Driven by pandemic-induced supply chain disruptions, vehicle affordability issues have prompted many vehicle shoppers to purchase older vehicles. With Open Lending’s expanded vehicle age limits, financial institutions can engage a wider range of consumers by offering risk-mitigated contracts on longer terms for more used vehicles at affordable price points.

“As chronic inflation and supply chain issues persist, Open Lending is committed to supporting our lenders and serving underserved borrowers,” chief revenue officer Matt Roe said in a news release. “Although used-car prices have begun to recede from all-time highs and record increases, valuations remain inflated.

“With our risk mitigation offering, lenders can boost loan originations and seed new borrower relationships — and borrowers, particularly those who are underserved, are able to pursue better lives and careers through car ownership. Under our new vehicle age terms, these relationships can flourish even in constrained market conditions,” Roe continued.

According to data from S&P Global, vehicle shoppers with FICO scores below 640 are driving demand for financing on older vehicles: From 2020 to 2022, the average age of vehicles financed in this credit segment jumped from 5.4 years to more than 6.4 years.

In the coming years, Open Lending said finance companies can expect to see this trend continue.

“In today’s macroeconomic climate, buyers are happy to choose an older vehicle if it means monthly payments that fit within their household budget,” said Michael Higgins, AVP of underwriting at Space Coast Credit Union.

“With Open Lending’s expanded product offering, we now have a better chance of meeting the needs of our members,” Higgins continued in the news release.

Launched in 2003, Lenders Protection offers consolidated analytics and insurance solutions to help credit unions, banks, automotive finance and refinance companies and captives originate and insure near and non-prime auto loans.

To learn more about Open Lending and its Lenders Protection program, go to this website.