Much more subprime used vehicle loans available

As Stevie Ray Vaughan so accurately puts it in the song “Crossfire,” “Money’s tight; nothing’s free.”. With all of the falling credit scores and also the recession, it is particularly true within the U.S. car-buying public. Wards Auto reports that used automobile sales are outpacing new auto sales, and also the market for subprime used car lending options has kept pace, a possible sign that things may be heating up on the financing front in The United States.

Non-prime and subprime loans a positive sign for credit liquidity

Autos have to sell to make the automotive market get better while credit has to flow, whether it is subprime or not. There isn’t an in-house financing option target coming from dealers. That does not mean that U.S. Citizens aren’t naturally leaning towards that kind of lending. But product availability remains a problem. Wards reports Ed Rykulski, automobile manager for Al Serra Auto Plaza of Grand Blanc, Mich., saying, “We employ 18 salespersons within the sales center and buy seriously at the auctions to keep sales at 2009 levels, when we sold 3,212 used units.”

More saleswomen employed to serve subprime female buyers

Many more women are being hired as saleswoman claims Nancy Koehrman of Taylor Used Car Center near Toledo, Ohio.

“Women customers prefer women to be handling the car selling and also the finance and insurance side, too, especially if they’ve been classified as subprime,” Koehrman told Wards.

But subprime used vehicle lending options are hardly exclusive to women. A FICO score of 599 or lower is had by one quarter of U.S. adult consumers, reports Fair, Isacc and Co. Inc. That’s 43 million individuals!. A lot of the market could be hit here. Consumers with FICOs from 650-699 are frequently being declined for standard car loans, which moves them in the subprime pool.

Inventory getting bigger with off-lease stock

Rykulski indicated to Wards the Serra group obtains much of its second-hand stock from off-lease automobiles. Of any Ward’s 500 members, which are dealerships that get good marks for reliability and other factors, Grand Blanc used auto center is one of the largest. Unfortunately, as used automobiles are currently common even with non-subprime customers, it is still difficult to keep sufficient inventory on hand.

Car Deal Expert is the place to go for good rates on used car loans

Additional reading

Wards Auto

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