The auto market is splitting in two. Affluent buyers continue to purchase vehicles, often paying cash or qualifying easily for loans, while subprime consumers are falling further behind.
According to Fitch Ratings (U.S. Auto Loan Indices, Section 04), subprime auto loan delinquencies have climbed to about 6.4 percent. and PYMNTS reports that vehicle repossessions are now at their highest levels since the Great Recession. J.D. Power data cited by DealershipGuy News shows that nearly 14 percent of new-car buyers, or roughly one in seven, now have a credit score below 650, the largest share in almost a decade.
The result is what economists call a K-shaped recovery, where the top half of the economy keeps climbing and the bottom half stalls or sinks. The auto industry may be the first warning light on the dashboard, signaling that consumer strain is spreading beyond the showroom.
The Uneven Road Ahead for Dealers
For dealerships, this divide shows up on the sales floor every day.
- Prime buyers are still active, often unaffected by rate hikes or price increases.
- Subprime buyers, however, face mounting barriers including higher monthly payments, fewer loan approvals, and limited inventory choices.
This widening gap leaves dealers in a difficult position. They need to move vehicles without increasing exposure to payment risk. The challenge isn’t demand; it’s access, and the rules of credit have changed faster than many consumers can adjust.
Flexibility as a Competitive Advantage
In this environment, the ability to offer buyers more flexibility is becoming a serious differentiator.
CrossCheck’s Multiple Check program helps dealers close more deals by giving qualified buyers additional time, typically up to 30 days, to complete payment. Customers write two to four checks at the time of sale, and the dealership deposits them on pre-agreed dates while CrossCheck guarantees payment.
That short window can make all the difference. It gives buyers time to secure a paycheck, finalize a trade, or build a down payment while the dealership stays protected and funded.
It’s not financing. It’s not a credit product. It’s a simple way to turn an almost-sale into a delivered vehicle.
Serving Both Sides of the Recovery
The “upper curve” of the K will keep buying regardless of rates. But the “lower curve,” everyday consumers who rely on affordable payment options, still need vehicles for work, family, and daily life.
Dealers who adapt their payment solutions to serve both sides of the divide are the ones staying competitive. Multiple Check helps bridge that gap, offering flexibility for buyers and certainty for dealers. It’s a tool that keeps sales moving even when credit access stalls.
Why It Matters Now
Every indicator points to a tougher credit environment ahead. Rising delinquencies and repossessions signal stress that could spread beyond auto retail. For dealers, protecting cash flow and providing responsible options for buyers isn’t just smart business; it’s a survival strategy.
CrossCheck’s guaranteed payment programs, including Multiple Check, give dealers that protection. They allow flexibility without risk and keep revenue predictable when the broader economy feels anything but.
Economic cycles come and go, but one truth remains. The dealers who protect their cash flow and adapt to changing buyer realities are the ones who last.
Learn how CrossCheck helps dealers protect every sale and serve every qualified buyer.
