Open Lending: Loan risk similar for 9-, 11-year-old cars


Experian data also shows an increase in the overall percentage of loans for 9- and 11-year-old vehicles during that time. In 2022, 9-year-old vehicles made up 5.2 percent of loans, up from 3.9 percent in 2020 and 3.3 percent in pre-pandemic 2019. Eleven-year-old vehicles appeared in 3 percent of loans, up from 1.9 percent in 2020 but down from 3.2 percent in 2019.

Overall,18 percent of used-vehicle loans in 2022 involved vehicles 9 years or older, up 1 point from 2020 but down 1 point from 2019. Eleven percent of used-vehicle borrowers financed models at least 11 years old, down from13 percent in 2020 and 14 percent in 2019.

The entire U.S. fleet has grown older as well. The average light vehicle on the road was 12.2 years old in January 2022, up nearly two months from a year earlier, according to S&P Global Mobility. It was the fifth straight year the average age had increased, S&P Global Mobility said.

Open Lending observed more 10- and 11-year-old vehicles on dealership lots, according to Roe.

“Dealers have to have a lender that’ll accept a loan on that,” said Roe, whose company primarily works with lenders who partner with franchised dealers.

Roe said his company asked itself: “ ’What are [lenders] really worried about?’ ”



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