NEW YORK - Lenders are making more subprime auto loans again, reversing the cautious approach they adopted after the credit crisis, an industry research firm said on Tuesday.
The portion of car loans made to subprime borrowers rose to 40.8 percent in the second quarter from 37.2 percent a year earlier, according to Experian Automotive, a unit of credit bureau and research firm Experian Plc.
The data shows how keen lenders are to boost their loan books amid a sluggish U.S. economy. Car loans are seen by lenders as relatively safe, because they are collateralized and repossessing cars is easier than foreclosing on homes.
This is how GM is able to claim great sales success. They will finance anybody with a score over 450.
ReplyDeleteBut don't worry, when the loans go bad, you and me tax payer will get stuck with the bill just like with the housing debacle
Scream,Scream,Scream!!!! We will never learn!
ReplyDelete