SoftBank-backed car subscription service Fair is concentrating on profitability, according to Fair’s new Chief Executive Bradley Stewart. Instead of focusing on exponential growth, the emphasis will be on “building a sustainable business that can be self-funding sooner than later,” he told Auto Finance News.
“I tend to try to principally focus on how to meet the market where it’s at and to win — not through gimmicks — but through service and through elegant customer experience,” Stewart continued.
The number of consumers considered to be in “financial hardship,” or 30 days past due on their auto loans, spiked in April, rising to 3.54% of total outstanding auto loans, up from 0.64% in March, according to a new study from TransUnion. The credit reporting agency defines financial hardship as “factors such as a deferred payment, frozen account or frozen past due payment.
By comparison, that figure stood at 0.51% in April 2019. TransUnion reported 83.8 million auto loans outstanding during the first-quarter of 2020, but did not provide an updated figure for Q2.