> ## Documentation Index
> Fetch the complete documentation index at: https://docs.amlok.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Auto lending benchmarks

> Evaluate vehicle-finance affordability, collateral exposure and payment performance.

Separate new and used vehicles, purchase loans and leases, and prime and non-prime cohorts. The underwriting unit is the borrower, facility and vehicle at a dated evidence cutoff.

## Financial-risk measures

| Measure | Definition and comparison rule |
| - | - |
| Payment-to-income | Proposed vehicle payment divided by recurring income using a stated gross or net convention. |
| Total debt burden | All supported scheduled debt payments divided by income, including the proposed vehicle obligation. |
| Loan-to-value | Financed principal divided by a dated, sourced vehicle value. Identify rolled-in negative equity and financed fees. |
| Payment performance | First-payment default, arrears migration and repossession reported separately by vintage and months on book. |
| Net loss severity | Unrecovered principal and stated eligible costs after recoveries, divided by exposure at default. Preserve recovery timing. |

## Public benchmark sources

Use the auto-loan series in [CMHC's non-mortgage delinquency tables](https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/research-reports/housing-finance/residential-mortgage-industry-report), retaining its quarter and 90-day threshold. The [Bank of Canada indicators](https://www.bankofcanada.ca/rates/indicators/financial-stability-indicators/) provide another defined credit-performance reference. Match the published product scope before comparing a lender's auto book.

These aggregates do not supply vehicle-level valuation, repossession cost or recovery labels. Establish those benchmarks from an appropriately authorized, dated portfolio cohort rather than assigning a market-wide loss severity.

## AMLOK evaluation

Test whether extracted contracts, payments and income reconcile to the facility. Measure amount, date, term and rate extraction separately. Evaluate collateral calculations only where a valid valuation is supplied; missing collateral evidence must remain missing.

For outcome testing, hold out borrowers, vehicles where identifiable and later origination vintages. Report discrimination and calibration separately for new and used vehicles and for each supported market. For Signal, evaluate missed-payment and cash-flow change signals without exposing repossession or borrower-contact commands.

Follow the [common benchmark contract](https://docs.amlok.io/research/industries/index.md#benchmark-contract) and report task-specific results through the [evaluation protocol](https://docs.amlok.io/research/evaluation.md).


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