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What Bubble? Smaller Volume of Auto Loans Coming from the Subprime Market

Automotive industry commentators have long feared a “bubble” in car sales, in which every consumer can drive off the lot with a car, no matter how bad his or her credit happens to be. Recent findings by Experian Automotive overturn that assumption, however. In fact, subprime and deep subprime car loans, those loans made to buyer with the lowest credit scores (and correspondingly highest degree of risk), are the lowest they’ve been in years. While it is true that more cars are purchased today with subprime loans than ever before, the overall proportion of those higher-risk loans is down. And delinquencies in auto payments show a slight decrease too — more reassuring news for the multimillion automotive loan industry.

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The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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