{"id":33524,"date":"2010-12-07T09:02:07","date_gmt":"2010-12-07T14:02:07","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=33524"},"modified":"2010-12-07T09:02:36","modified_gmt":"2010-12-07T14:02:36","slug":"auto-lenders-loosening-access-to-credit","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2010\/12\/auto-lenders-loosening-access-to-credit\/","title":{"rendered":"Auto Lenders Loosening Access To Credit"},"content":{"rendered":"
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Lenders lossen credit, but delinquencies and defaults still decline, reports Experian.<\/figcaption><\/figure>\n

Barely a year ago, even some of the most affluent, credit-worthy customers were being turned away when they applied for automotive loans \u2013 one reason new car sales slumped to a decades-low 8.6 million for 2009.\u00a0 But things are starting to turn in a positive direction, according to a new study by research firm Experian Automotive.<\/p>\n

Not only have the spigots re-opened for buyers with top-tier credit scores, but even the \u201ccredit challenged\u201d are beginning to find ways to land loans.\u00a0 Significantly, the loosening of credit is matched by a sharp decline in both loan defaults and delinquencies, according to Experian\u2019s analysis of third-quarter automotive lending.<\/p>\n

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\u201cEasier access to loans is a positive sign for the auto industry, as tighter loan criteria during the economic downturn represented a significant challenge for automotive manufacturers and their retail networks,\u201d said Scott Waldron, president of Experian Automotive. \u201cMaking it easier for consumers to obtain credit can only help the auto industry moving forward.\u201d<\/p>\n

Lenders are still focusing on the top tier, so-called \u201cprime\u201d customers who garner at least a 680 on their credit scores.\u00a0 But the share of loans going to the lower tier is rising — for those who might be termed credit challenged, the increase was 12.7% during the third quarter compared to the year before.<\/p>\n

At the same time, the number of buyers 30 days behind on their loans fell 8.43%, while 60-day delinquencies were down 17.39%.\u00a0 In all, the total dollars at risk should buyers default on loans plunged by $6.4 billion.<\/p>\n

\u201cWith delinquencies down and less money in their portfolios at risk, lenders can be a little less conservative in their lending strategies,\u201d suggested Melinda Zabritski, Experian\u2019s director of automotive credit.<\/p>\n

Other findings:<\/p>\n