June 25, 2024

Early payment default rates skyrocket on rejected deals

Early payment defaults increase the risk of auto fraud, especially when a loan rejected by one lender is later funded by another. This can lead to tension between dealers and lenders. Early payment default (EPD) occurs when a loan defaults within the first six months, with a default rate of 5% for all loans in 2023.


  1. What is an early payment default?
  2. An early payment default (EPD) refers to a loan defaulting within the first six months.

  3. What is the default rate for all loans in 2023?
  4. The default rate for all loans in 2023 is 5%.


It is important to be aware of the risks associated with early payment defaults and auto fraud, especially when loans are rejected by one lender and funded by another. Collaboration between dealers and lenders is essential to mitigate these risks and prevent tension in the industry.

Leave a Reply

Your email address will not be published. Required fields are marked *