Subprime Auto Boom Besieged by Late-Payment Jump

March 5, 2014
Bloomberg 
auto financing news
A three-year lending boom to car buyers with flawed credit that helped push auto sales to a six-year high is starting to show signs of overheating.

The percentage of loans packaged into securities that are more than 30 days late rose 1.43 percentage points to 7.59 percent in the 12 months ended Sept. 30, the highest in at least three years, reports Standard & Poor's. "We're at this inflection point," says S&P analyst Amy Martin. "Now that they are opening the lending spigot, it's only natural that losses are starting to rise."

Delinquencies on subprime auto loans are likely to have increased more during the fourth quarter, the holiday period when consumers typically stretch their budgets, according to S&P.









Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`