Econtracting Volume Down 1.5% But Outpaces Sales in Q1
Wolters Kluwer Compliance Solutions’ Q1 Auto Finance Digital Transformation index finds U.S. econtracting volume declined by 1.5% from the year-ago quarter but “significantly” outpaced new vehicle sales, analysts say.
Affordability concerns, longer repayment terms and an unpredictable EV market all contributed to a 7% year-over-year decline in new vehicle, according to the report. A decline of 1.5% is a “clear signal” that digital contracting helps finance sources manage volatility, writes Wolters Kluwer strategist Matthew Babcock in a release.
“On the securitization side, digital transactions surged more than 10% this quarter, even as overall market issuance is forecasted to drop. This growth highlights how digitization has become a critical tool for providing the transparency and data integrity investors require, especially as the market navigates a shifting lending environment,” Babcock says. “The foundation being built today through digital documentation and standardized workflows will define which institutions lead in the years ahead.”
