Kicking the Tires: Risks and Opportunities in Lending to Used Car Dealers

Not long ago, the pandemic and supply chain shortages caused major disruptions in the new and used vehicle markets. When production lines shut down, demand for used cars—and their prices—skyrocketed.

Though the pandemic is largely in the rearview mirror, and inflation is moderating, Americans continue to look for ways to stretch their paychecks. That includes foregoing new cars for the used vehicle sector, where demand, while not at the peaks of a few years ago, remains strong.