Underwriting standards on auto loans will slip in 2014 as increased competition pushes lenders to take more risk, according to Moody’s Investors Service.
“Auto lenders will continue their return to higher levels of risk-taking, a trend that emerged in 2013 and will gain momentum in the coming year,” Moody’s analysts Jeffrey Hibbs, Mack Caldwell and William Black wrote in a report. Heightened competition will result in “ever-more generous loan terms,” they said.
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