Allied’s Senior Vice President, Client Experience and Risk Management Services Anne Holtzman joins the podcast to talk about why CPI is such a hot topic. Anne covers what she’s been seeing in 2023, the effects of a booming used car market, challenges FIs are facing, and her predictions for the backend of the year.
In this episode...
[0:26] Meet Anne Holtzman
[3:46] Why CPI, why is this such an important topic?
[6:10] In 2023, we've seen the highest auto default rates now up to almost 0.94%.
[6:26] A decline in automobile car values.
[8:19] The average interest rate on a used vehicle is 10.5%.
[9:17] Continue to see restricted demand on vehicles as we move through 2023 and 2024.
[11:10] With inflation, a much higher cost to repair vehicles.
[11:52] Delinquency or deficiency balances, are going to return.
[12:34] If you're not lending, then the focus is always on risk mitigation.
[13:50] About 36% of the repossession agent market was lost.
[14:28] We are going to see decreased recovery rates and an increased need for technology.
[18:49] What are your market predictions going into the back half of 2023?
[19:06] Are vehicles going to be affordable for the main-line consumer?
[19:50] Technology, digital engagement, and AI are going to make a big mark.
[20:39] 2024 will be a year of refinance.
