Friday, October 23, 2015

Auto Loan Market "Reminds Me Of What Happened Right Before The Crisis", Top Regulator Warns | Zero Hedge

Auto Loan Market "Reminds Me Of What Happened Right Before The Crisis", Top Regulator Warns | Zero Hedge:



 " 
Subprime car-loan originations have taken off in recent years as lenders have loosened underwriting criteria in this sector, allowing for borrowers with low, and often no, credit scores to get access to financing. During the first half of 2015, lenders gave out $56.4 billion in subprime auto loans, up 13% from the same period a year ago and up 181% from the first half of 2009, when the market for these loans bottomed out, according to credit-reporting firm Equifax Inc.
 
Subprime car loans account for 20% of the car-loan dollars given out from January through June, the highest share for the period since 2008, according to Equifax."



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