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Posts Tagged ‘subprime car loans’

Auto Sales Jumping as Banks Loosen Credit Reins

Despite rise in subprime lending, defaults at near-record lows.

by on Jul.31, 2014

Banks have loosened the credit lines and as a result auto sales are booming in 2014.

It’s becoming clear that one of the primary reasons that new car sales are booming this year is that Americans are able to more easily get credit to finance their purchases. The total amount of outstanding auto loans has increased by 10% in 2014.

According to Equifax and its National Consumer Credit Trends Report, there is $902.2 billion in outstanding auto loans, which is a new record.

The Word is "Free"!

“Auto lending continues to thrive, accounting for more than 50% of all new non-mortgage lending through April of 2014,” said Dennis Carlson, Deputy Chief Economist at Equifax. (more…)

Auto Loan Delinquencies Drop

Sub-prime lending regaining momentum.

by on Aug.10, 2012

Auto loan delinquency and reposession rates are dropping fast, according to a new study.

Auto buyers are doing “an excellent job” of keeping current on their loan payments, a significant improvement from just a few years ago when delinquencies and repossession rates were soaring, noted a major credit tracking service.

Experian Automotive reports consumers continued to make timely automotive loan payments during the second quarter of 2012, lowering the average delinquency rate across all lending organizations, including banks, captive finance arms, finance companies and credit unions.

The falling delinquency rate has encouraged automakers to take on more “sub-prime” loans in recent months, broadening the industry’s sales base. It’s also helped reduce losses at companies such as Ally Bank, formerly GMAC, Ford Motor Credit and GM Financial and other captive auto finance companies.

Inside Information!

The new report serves up some good news for lenders and consumers alike, especially when there are worrisome signs that home foreclosures are again on the rise.

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