Wednesday, 31 August 2011

US Subprime Car Loans on rise again !!!




 
US is out of Subprime crisis. We all remember what the situation was at that time, after that time and even until nowa few hours before when Experian Automotive analyst came out with the results that US Car Loan lenders have again lending more car loans, reversing the cautious approach they adopted after the credit crisis, Melinda Zabritski, director of Automotive credit at Experian Pls. said.

The portion of car loans made to subprime borrowers rose to 40.8% in the second quarter from 37.2% 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 US economy.   In mid 2007, loans to subprime borrowers made up 46.2% of the total.

Car loans are seen by lenders as relatively safe, because they are collateralized and repossessing cars is easier than foreclosing on homes. Average credit scores for borrowers declined and the average term for their loans extended by one month to 63 months on new cars and 59 months on used cars. 

Loans delinquent by 30 days fell to 2.59% of those outstanding in the second quarter of this year.





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