Financial institutions increased restrictions on lending criteria for vehicle loans in the first quarter of 2024 as the demand for consumer and automotive financing decreased. The net percentage of banks that implemented stricter credit requirements was 9.8% in Q2, up from 6.3% in Q1 and significantly higher than the 27.5% recorded in Q2 of 2023, based on the latest findings from the Federal Reserve’s April Senior Loan Officer Opinion Survey on Bank Lending Practices.
FAQ
- What caused the tightening of lending standards for auto loans in Q2 2024?
- How did the demand for consumer and car loans change in the first quarter of 2024?
- What was the net percentage of banks that tightened credit standards in Q2 compared to previous quarters?
Conclusion
Overall, the data indicates a trend of increased cautiousness among banks when it comes to providing auto loans, with a notable uptick in the tightening of lending standards. This could potentially have implications for consumers seeking financing for vehicles in the current economic climate.
