Automotive captive finance companies made a strong recovery in the auto lending market by the end of 2023, bouncing back from a slowdown in 2022 despite facing challenges from high interest rates. Captive lenders increased their loan portfolios by an average of 5.8% in 2023, reversing a 6.5% decrease in the previous year, as reported in the latest Big Wheels Rankings data analyzed by Auto Finance News.
FAQ:
- What are captive finance companies?
- How do interest rates impact the auto lending industry?
- What is the significance of the Big Wheels Rankings data?
Conclusion:
The resurgence of captives in auto lending in 2023 demonstrates their resilience and adaptability in the face of challenging market conditions. Despite the lingering effects of high interest rates, captive finance companies managed to grow their portfolios, signaling a positive outlook for the industry moving forward.
