Podcast: Synthetic fraud rises in powersports, auto

Podcast: Synthetic fraud rises in powersports, auto

Auto originations have picked up industrywide even as average payments remain elevated, while manufacturers are increasing incentives to move inventory.

Originations totaled 6.4 million contracts in the second quarter, up 0.7% year over year, according to the latest data from TransUnion. The return of leasing and an uptick in incentives are helping address affordability concerns and drive sales.

As of October, the average transaction price (ATP) of a new vehicle landed at $48,623, up 1.7% YoY, according to Kelley Blue Book. New-vehicle incentives climbed to 7.7% of ATP compared with 5% of ATP in October 2023.

Meanwhile, auto loan demand weakened in the third quarter while banks’ credit standards remained steady.

In powersports, inventory levels continued to build as sales declined 6.3% YoY in October, according to BMO Capital Markets data.

Synthetic identity fraud also is a rising concern in the powersports industry, with an uptick in fraud contributing to stolen RVs and mirroring concerns in the automotive finance industry.

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Associate Editors James Van Bramer and Ashley Savage discuss trends in originations activity, pricing and the powersports market.

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