U.S. Lenders Offer More Subprime Auto Loans

August 30, 2011
auto financing news

According to a new report from Experian Automotive, lenders are offering car buyers a larger number of subprime auto loans. The trend is a marked reversal from the tentative approach adopted several years ago after the industry lost money during the financial meltdown. Experian Automotive calculated that the number of car loans issued to subprime borrowers increased to 40.8 percent in the second quarter of the year, up from 37.2 percent a year earlier. According to the firm, the data reveals lenders are now eager to boost their loan books amid a stagnant U.S. economy. The likely reason behind the increase in loan disbursement is that car loans are perceived as a safer lending choice.
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