Diversification in funding drives originations
Diversification across public and private funding sources is key to driving origination growth for auto lenders as the cost of funds fluctuates and investors look to put an abundance of capital to work in auto finance. Auto Finance News’ March 11 webinar “Funding Strategies: From Warehousing to Private to ABS” shed light on interest from private investors in auto and the amount of money that is available to originators. Insurance companies arelarge players in backing private investment in auto, especially as lenders consider diversifying their funding sources to include asset managers alongside banks and public capital markets. Meanwhile, late-stage delinquencies rose in the fourth quarter but the pace of increase is stabilizing compared to large upticks in 2022 and 2023. As tax refund season approaches, affordability and credit access improved in February while average transaction prices saw a slight uptick. In this episode of “Weekly Wrap,” Auto Finance News Editor Amanda Harris discusses the top takeaways from last week’s funding webinar along with other top stories for the week ended March 14.