TLDR: TAM for outright owned vehicles is $61B. $120B including financed vehicles.

This section will answer the question, what is the TAM for Yendo? More specifically it will address these questions.

Please note this is only for cars owned outright! Yendo now serves customers with existing liens, which more than doubles this TAM.

  1. Will non-prime borrowers leverage their car as access to credit? If so, how big is the current space?
  2. How large is the title loan market? We know this is small relative to total consumer non-prime credit, but this is the lowest hanging fruit.
  3. Of non-prime borrowers, how many own their cars outright?

Auto Ownership

Current used cars in operation: 205M

Used cars with Financing in place: 65M

Used cars owned outright: 140M

Here's an excerpt from the quarterly Experian report on the automotive industry (2022). As you can see, as cars get out of the core direct-auto finance band (0-6 years old) the % of vehicles with financing drops significantly.

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Additionally, here is a look at every car in Texas as a sample population. Of the 21M cars in operating in Texas, 15M (71%) are owned outright if you apply the Experian figures. Chart is below.

21,275,751 29% 71% 15,002,164
Model Year # of Vehicles % of Total Vehicles % w/ Financing (per Experian) % owned outright # Owned outright
2018 1115750 5.24% 72% 28% 315,311
2017 1418059 6.67% 70% 30% 430,665
2016 1265266 5.95% 62% 38% 487,001
2015 1361742 6.40% 55% 45% 612,103
2014 1257082 5.91% 48% 52% 648,026
2013 1244136 5.85% 42% 58% 726,078
2012 1158610 5.45% 34% 66% 767,000
2011 943822 4.44% 30% 70% 662,752
2010 842730 3.96% 23% 77% 650,250
2009 722954 3.40% 18% 82% 593,039
2008 1196775 5.63% 15% 85% 1,013,190
2007 1248489 5.87% 13% 87% 1,084,812
2006 1115327 5.24% 10% 90% 1,002,456
2005 1151686 5.41% 8% 92% 1,054,253
2004 1078365 5.07% 7% 93% 998,027
2003 1055998 4.96% 6% 94% 991,477
2002 1076940 5.06% 5% 95% 1,020,078
2001 1036568 4.87% 5% 95% 988,575
2000 985452 4.63% 3% 97% 957,071