New Independent Research Finds VantageScore 4.0’s Increased Reliability Unlocks Millions in Auto ABS Market Savings

• VantageScore 4.0 Reduces Variance in Auto Loan Bad Rates by Up To 75% Compared with Traditional Scores

• Consumers Newly Scored by VantageScore 4.0 Demonstrate Better or Same Credit Performance Compared to Populations Scored by Traditional Models for Auto Loans

• VantageScore 4.0 Unlocks Millions in Capital Efficiencies for Auto ABS Market Through Credit Enhancement and Reduces Lifetime Transaction Costs

SAN FRANCISCO, October 16, 2026--New research from OGMA Risk and Analytics reveals that the VantageScore 4.0 credit scoring model unlocks significant financial efficiencies in the auto asset-backed securities (ABS) market, potentially reducing financing costs, improving credit risk assessment and expanding access to capital. The whitepaper, titled "VantageScore 4.0 in the Auto Loan ABS Market: What the Data Shows on Reach, Performance and Reliability," finds that, on an illustrative $1 billion Near Prime auto ABS transaction and under stated assumptions, using VantageScore 4.0 could release approximately $11 million in credit enhancement and generate approximately $4 million in cost savings over the life of the deal. These findings demonstrate that VantageScore 4.0 can help auto lenders and securitization market participants more accurately evaluate credit risk while improving the economics of auto loan securitizations.

"Credit scoring is fundamental to how auto loans are originated, securitized and ultimately valued by investors," said Rikard Bandebo, EVP, Chief Strategy Officer and Chief Economist at VantageScore. "OGMA's research demonstrates that VantageScore 4.0 can deliver meaningful financial benefits throughout the securitization process. By providing a more reliable assessment of credit risk, VantageScore 4.0 has the potential to unlock millions of dollars in capital efficiencies while expanding opportunities for creditworthy consumers who have historically been overlooked by traditional scoring models."

The whitepaper evaluates VantageScore 4.0 across three critical measures: the ability to score more consumers, the credit performance of newly scored borrowers, and the reliability of credit score bands in predicting losses. The analysis uses a nationally representative 1-in-20 sample of the U.S. consumer credit population covering 2023 through 2025, with 24 months of observed credit performance following each consumer's observation point.

Key findings from the research include:

MORE RELIABLE CREDIT SCORING IMPROVES RISK ASSESSMENT: VantageScore 4.0 delivers significantly greater consistency in predicting credit losses than traditional scoring models. Within comparable credit score bands, bad rates vary 75% less than those associated with a generic account management score on existing accounts and 45% less than those associated with a generic origination score. This improved reliability provides auto ABS issuers, investors and rating agencies with a more dependable measure of underlying credit risk, potentially enabling more precise pricing and credit enhancement requirements.