eXpediters Network

about us
contact us
headline news
expedite expos
expediting f.a.q.
industry links
who's hiring
expedite gear
link to us
Wholesale Expediting
All Types Expediting
OF Truckload Expediters
eXpediters Union
Midwest Expediting
ATEX Expediting
Chase Expediting
Rush Expediting
driver only
Subprime loans on rise for autos 07/11/2014
Category: General News
Publisher: Associated Press
Author: DEE-ANN Durbin

  The percentage of loans going to subprime buyers rose 8 percent  in the third quarter, their first year-over-year increase since 2007,  according to a report last week by Experian, a credit reporting  agency.  For new cars, the percentage of loans going to subprime  rose 13 percent over the July - September period in 2009.  The  increase for used cars was 3 percent.

  The majority of loans - 63 percent - still going to buyers with  prime credit scores, which is defined as a 680 or above.  But even  that is settling into a more normal pattern.  Before the recession,  when credit was loose, just 51 percent of loans were going to prime  buyers, according to Melinda Zabritski, director of automotive credit at Experian.  Last fall, when credit was tight, 66 percent
  of loans went to prime buyers.

  Another sign that the credit mark is thawing: The loans people are getting are covering larger amounts and have longer terms.  The average amount of financed for new cars rose $2,530 to $25,273, over the third quarter of last year, while the average amount  financed for used cars grew $977 to $16,706.  The average terms rose  by about a month, although the lowest-tier buyers - those with scores of 550 or less - saw their terms rise by nearly four months.

  Zbaritiski said the loosening in auto lending is likely to continue  to grow in the near term.  On Oct. 1, General Motors Co. finalized its purchase of AmeriCredit Inc., a Texas company that specializes in subprime lenders and has a $9 billion portfolio of subprime loans.

  AmeriCredit had already been helping GM with subprime loans, which  amount to 4 percent of the automaker's sales.

  But GM now expects that to grow by a percentage point of two, a significant number considering that GM is on pace to sell more than 2 million vehicles in the U.S. this year.

  Banks and auto financing companies believe they can afford to take bigger risks because consumers are being more cautious with their money and savings rates are up.  The percentage of loans delinquent for 30 days fell 8 percent in the third quarter, to 3 percent, while the percentage of loans delinquent for 60 days fell 17 percent, to less than 1 percent.




Rig master power
Howes lubricator
Motor carrier atlas
Lucas oil
Indusrty Links
eXpediters Union
eXpedite Carriers
eXpediters Insurance
eXpediting Loads
eXpediters Online Forum
eXpediting Online
eXpedite Jobs online
eXpediting Help Wanted
eXpediters Wanted
Fort Wayne Expedite Expo