Nonprime application share ‘inching up’ amid prime declines

Based on recent reporting from Auto Finance News, Nissan Motor Acceptance Company (NMAC) is experiencing a shift in its auto loan application mix, with nonprime applications gradually increasing while prime application volumes decline. This trend reflects broader dynamics in the auto lending market as lenders adjust their risk appetite amid changing economic conditions.

NMAC’s Application Mix Shift

NMAC CEO noted that the captive finance company’s prime auto loan application volume has dropped while subprime and nonprime volumes have increased. This shift represents the company’s nonprime application share “inching up” rather than surging dramatically, suggesting a measured change in the borrower profile seeking Nissan financing.

Broader Auto Lending Context

The trend at NMAC aligns with wider industry patterns observed in recent quarters. According to TransUnion’s Q1 2026 Credit Industry Insights Report, auto loan originations softened at the end of 2025 and start of 2026, with super-prime originations falling 5.4% year-over-year and prime-plus declining 2.9%. Meanwhile, subprime auto loans showed gains in Q4 2025, with subprime share reaching 17.6% of all originations, up from 16.2% a year earlier, according to the Federal Reserve Bank of New York.

Market Implications

This compositional shift toward nonprime borrowers comes as prime and super-prime segments face headwinds, with originations running approximately 10% below pre-pandemic Q4 2019 levels across all risk tiers. The gradual increase in nonprime and subprime lending represents a recovery from pandemic-era lows when supply constraints and risk aversion limited access for lower-credit-tier borrowers.