The Truth About Cars » Auto Loans http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Sat, 30 Apr 2016 15:15:06 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.4 Americans Loving Their Leases, Not so Much Their Loans http://www.thetruthaboutcars.com/2016/03/americans-loving-leases-loans/ http://www.thetruthaboutcars.com/2016/03/americans-loving-leases-loans/#comments Thu, 03 Mar 2016 20:05:05 +0000 http://www.thetruthaboutcars.com/?p=1295794 Good times have clearly arrived, because Americans are flinging money at cars like it’s going out of style. Leasing has never been more popular for American car buyers, reports the Detroit Free Press, and the size of their auto loans have also reached record territory. According to industry data tabulator Experian Automotive, 33.6 percent of […]

The post Americans Loving Their Leases, Not so Much Their Loans appeared first on The Truth About Cars.

]]>
Good times have clearly arrived, because Americans are flinging money at cars like it’s going out of style. Leasing has never been more popular for American car buyers, reports the Detroit Free Press, and the size of their auto loans have also reached record territory. According to industry data tabulator Experian Automotive, 33.6 percent of […]

The post Americans Loving Their Leases, Not so Much Their Loans appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2016/03/americans-loving-leases-loans/feed/ 153
Auto Loans Top $1T; Sub-prime Loans Grow 10 Percent Over 2014 http://www.thetruthaboutcars.com/2015/08/auto-loans-top-1t-sub-prime-loans-grow-10-percent-2014/ http://www.thetruthaboutcars.com/2015/08/auto-loans-top-1t-sub-prime-loans-grow-10-percent-2014/#comments Tue, 11 Aug 2015 21:00:59 +0000 http://www.thetruthaboutcars.com/?p=1138674 Credit-reporting agency Equifax says that as of June 2015 more than $1 trillion has been loaned or leased in the United States. The total dollar amount is 10.5 percent higher than last year. The average loan amount is $20,800, which is a 3.65 percent increase over last year, and the average sub-prime loan is $18,200. Sub-prime […]

The post Auto Loans Top $1T; Sub-prime Loans Grow 10 Percent Over 2014 appeared first on The Truth About Cars.

]]>
Credit-reporting agency Equifax says that as of June 2015 more than $1 trillion has been loaned or leased in the United States. The total dollar amount is 10.5 percent higher than last year. The average loan amount is $20,800, which is a 3.65 percent increase over last year, and the average sub-prime loan is $18,200. Sub-prime […]

The post Auto Loans Top $1T; Sub-prime Loans Grow 10 Percent Over 2014 appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2015/08/auto-loans-top-1t-sub-prime-loans-grow-10-percent-2014/feed/ 19
Wells Fargo Places Cap On Subprime Loans http://www.thetruthaboutcars.com/2015/03/wells-fargo-places-cap-subprime-loans/ http://www.thetruthaboutcars.com/2015/03/wells-fargo-places-cap-subprime-loans/#comments Mon, 02 Mar 2015 15:19:22 +0000 http://www.thetruthaboutcars.com/?p=1010450 Wells Fargo will rein in its subprime lending business, limiting subprime car loans to 10 percent of auto loans it originates. According to the New York Times, the move comes amid concerns that the market for subprime car loans is expanding too quickly. While the paper’s Dealbook section notes that Wells Fargo has a strong reputation […]

The post Wells Fargo Places Cap On Subprime Loans appeared first on The Truth About Cars.

]]>
Wells Fargo will rein in its subprime lending business, limiting subprime car loans to 10 percent of auto loans it originates. According to the New York Times, the move comes amid concerns that the market for subprime car loans is expanding too quickly. While the paper’s Dealbook section notes that Wells Fargo has a strong reputation […]

The post Wells Fargo Places Cap On Subprime Loans appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2015/03/wells-fargo-places-cap-subprime-loans/feed/ 19
Repossessions, Delinquencies Up As Oustanding Auto Loan Balances Hit All-Time High http://www.thetruthaboutcars.com/2014/08/repossessions-delinquencies-oustanding-auto-loan-balances-hit-time-high/ http://www.thetruthaboutcars.com/2014/08/repossessions-delinquencies-oustanding-auto-loan-balances-hit-time-high/#comments Thu, 21 Aug 2014 15:49:31 +0000 http://www.thetruthaboutcars.com/?p=897458 The latest Q2 2014 data from Experian was released this week, and key metrics like repossessions, loan delinquencies and outstanding balances have all seen increases. Outstanding balances were up nearly 12 percent, rising to an all-time high of $839.1 billion dollars. 60-day delinquencies were up 7 percent to 0.62 percent in Q2, while 30-day delinquencies […]

The post Repossessions, Delinquencies Up As Oustanding Auto Loan Balances Hit All-Time High appeared first on The Truth About Cars.

]]>
The latest Q2 2014 data from Experian was released this week, and key metrics like repossessions, loan delinquencies and outstanding balances have all seen increases. Outstanding balances were up nearly 12 percent, rising to an all-time high of $839.1 billion dollars. 60-day delinquencies were up 7 percent to 0.62 percent in Q2, while 30-day delinquencies […]

The post Repossessions, Delinquencies Up As Oustanding Auto Loan Balances Hit All-Time High appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/08/repossessions-delinquencies-oustanding-auto-loan-balances-hit-time-high/feed/ 86
Honda’s Sales Chief Warns Of “Stupid Things” As Accord, CR-V Top Retail Sales Charts http://www.thetruthaboutcars.com/2014/08/hondas-sales-chief-warns-stupid-things-accord-cr-v-top-retail-sales-charts/ http://www.thetruthaboutcars.com/2014/08/hondas-sales-chief-warns-stupid-things-accord-cr-v-top-retail-sales-charts/#comments Tue, 19 Aug 2014 19:33:25 +0000 http://www.thetruthaboutcars.com/?p=895466 In this year’s red hot new car market, the Honda Accord and CR-V have apparently captured the top spot in both new car and SUV retail sales through the first half of 2014, according to Polk registration data. But John Mendel, Honda’s head of sales, had some pointed words for the industry as a whole, and […]

The post Honda’s Sales Chief Warns Of “Stupid Things” As Accord, CR-V Top Retail Sales Charts appeared first on The Truth About Cars.

]]>
In this year’s red hot new car market, the Honda Accord and CR-V have apparently captured the top spot in both new car and SUV retail sales through the first half of 2014, according to Polk registration data. But John Mendel, Honda’s head of sales, had some pointed words for the industry as a whole, and […]

The post Honda’s Sales Chief Warns Of “Stupid Things” As Accord, CR-V Top Retail Sales Charts appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/08/hondas-sales-chief-warns-stupid-things-accord-cr-v-top-retail-sales-charts/feed/ 88
Santander Consumer Receives DOJ Subpoena http://www.thetruthaboutcars.com/2014/08/886161/ http://www.thetruthaboutcars.com/2014/08/886161/#comments Sat, 09 Aug 2014 15:35:40 +0000 http://www.thetruthaboutcars.com/?p=886161 Following GM Financial’s subpoena from the Department of Justice, Santander Consumer said that it had received a subpoena as well related to “production of documents and communications that, among other things relate to the underwriting and securitization of nonprime auto loans since 2007,”   Reuters is reporting that Santander Consumer is co-operating with the requests. […]

The post Santander Consumer Receives DOJ Subpoena appeared first on The Truth About Cars.

]]>
Following GM Financial’s subpoena from the Department of Justice, Santander Consumer said that it had received a subpoena as well related to “production of documents and communications that, among other things relate to the underwriting and securitization of nonprime auto loans since 2007,”   Reuters is reporting that Santander Consumer is co-operating with the requests. […]

The post Santander Consumer Receives DOJ Subpoena appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/08/886161/feed/ 19
Outstanding Subprime Loan Balances Hit 8-Year Highs http://www.thetruthaboutcars.com/2014/07/outstanding-subprime-loan-balances-hit-8-year-highs/ http://www.thetruthaboutcars.com/2014/07/outstanding-subprime-loan-balances-hit-8-year-highs/#comments Fri, 25 Jul 2014 14:24:55 +0000 http://www.thetruthaboutcars.com/?p=873226 Buried in a feel good story about auto loans comes the news that subprime auto loans are at levels that we haven’t seen in nearly a decade. Citing data from Equifax, Automotive News reports The credit bureau also noted originations and total outstanding balances for subprime auto loans — defined as loans to customers with credit scores […]

The post Outstanding Subprime Loan Balances Hit 8-Year Highs appeared first on The Truth About Cars.

]]>
Buried in a feel good story about auto loans comes the news that subprime auto loans are at levels that we haven’t seen in nearly a decade. Citing data from Equifax, Automotive News reports The credit bureau also noted originations and total outstanding balances for subprime auto loans — defined as loans to customers with credit scores […]

The post Outstanding Subprime Loan Balances Hit 8-Year Highs appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/07/outstanding-subprime-loan-balances-hit-8-year-highs/feed/ 103
The New York Times Shines A Light On Subprime http://www.thetruthaboutcars.com/2014/07/the-new-york-times-shines-a-light-on-subprime/ http://www.thetruthaboutcars.com/2014/07/the-new-york-times-shines-a-light-on-subprime/#comments Mon, 21 Jul 2014 13:20:41 +0000 http://www.thetruthaboutcars.com/?p=870066 The issue of subprime car loans, specifically loans with exorbitant interest rates for used cars, has filtered into the New York Times, with the paper’s Dealbook section running an investigation into the practice. The NYT article serves as a primer on the subprime auto loan crisis, though it focuses on used cars, and the unscrupulous practices of dealers […]

The post The New York Times Shines A Light On Subprime appeared first on The Truth About Cars.

]]>
The issue of subprime car loans, specifically loans with exorbitant interest rates for used cars, has filtered into the New York Times, with the paper’s Dealbook section running an investigation into the practice. The NYT article serves as a primer on the subprime auto loan crisis, though it focuses on used cars, and the unscrupulous practices of dealers […]

The post The New York Times Shines A Light On Subprime appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/07/the-new-york-times-shines-a-light-on-subprime/feed/ 69
OCC Warns Of Auto Lending Risk http://www.thetruthaboutcars.com/2014/07/occ-warns-of-auto-lending-risk/ http://www.thetruthaboutcars.com/2014/07/occ-warns-of-auto-lending-risk/#comments Thu, 03 Jul 2014 14:48:24 +0000 http://www.thetruthaboutcars.com/?p=858137 The Office of the Comptroller of the Currency, a government entity that regulates and supervises banks, is sounding the alarm regarding risks related to auto loans. In its semi-annual report released earlier this week, the OCC warned about the usual factors that TTAC has been discussing for some time: rising loan terms, an increased focus on […]

The post OCC Warns Of Auto Lending Risk appeared first on The Truth About Cars.

]]>
The Office of the Comptroller of the Currency, a government entity that regulates and supervises banks, is sounding the alarm regarding risks related to auto loans. In its semi-annual report released earlier this week, the OCC warned about the usual factors that TTAC has been discussing for some time: rising loan terms, an increased focus on […]

The post OCC Warns Of Auto Lending Risk appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/07/occ-warns-of-auto-lending-risk/feed/ 29
No Credit Score? Show Your Cable Bill, Get Approved http://www.thetruthaboutcars.com/2014/05/no-credit-score-show-your-cable-bill-get-approved/ http://www.thetruthaboutcars.com/2014/05/no-credit-score-show-your-cable-bill-get-approved/#comments Wed, 14 May 2014 11:15:37 +0000 http://www.thetruthaboutcars.com/?p=819906 New technology is allowing buyers with no credit score – due to a lack of credit history or a personal bankruptcy – to get vehicle financing via examination of documents like the payment history of their cable or cell phone bill. Automotive News reports that companies like Equifax can provide information for customers who have been […]

The post No Credit Score? Show Your Cable Bill, Get Approved appeared first on The Truth About Cars.

]]>
New technology is allowing buyers with no credit score – due to a lack of credit history or a personal bankruptcy – to get vehicle financing via examination of documents like the payment history of their cable or cell phone bill. Automotive News reports that companies like Equifax can provide information for customers who have been […]

The post No Credit Score? Show Your Cable Bill, Get Approved appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/05/no-credit-score-show-your-cable-bill-get-approved/feed/ 49
Record Auto Loans Taken As Interest Rates Drop http://www.thetruthaboutcars.com/2013/12/record-auto-loans-taken-as-interest-rates-drop/ http://www.thetruthaboutcars.com/2013/12/record-auto-loans-taken-as-interest-rates-drop/#comments Fri, 06 Dec 2013 13:00:14 +0000 http://www.thetruthaboutcars.com/?p=672706 Though the calendar is about to change to 2014, it appears to be 2007 all over again in dealer lots and showrooms nationwide as a record number of auto loans with low interest rates were signed during the third quarter of 2013. According to Experian, the average amount taken out for a new car loan […]

The post Record Auto Loans Taken As Interest Rates Drop appeared first on The Truth About Cars.

]]>
Though the calendar is about to change to 2014, it appears to be 2007 all over again in dealer lots and showrooms nationwide as a record number of auto loans with low interest rates were signed during the third quarter of 2013. According to Experian, the average amount taken out for a new car loan […]

The post Record Auto Loans Taken As Interest Rates Drop appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2013/12/record-auto-loans-taken-as-interest-rates-drop/feed/ 92
Moody’s: Auto Loan Standards Will Be Relaxed in 2014. Leases to Increase As Prices Climb http://www.thetruthaboutcars.com/2013/11/moodys-auto-loan-standards-will-be-relaxed-in-2014-leases-to-increase-as-prices-climb/ http://www.thetruthaboutcars.com/2013/11/moodys-auto-loan-standards-will-be-relaxed-in-2014-leases-to-increase-as-prices-climb/#comments Fri, 29 Nov 2013 12:00:12 +0000 http://www.thetruthaboutcars.com/?p=666378 According to Moody’s Investors Service, increased competition for issuing auto loans will result in lenders taking greater risks and lowering underwriting standards. “Auto lenders will continue their return to higher levels of risk-taking, a trend that emerged in 2013 and will gain momentum in the coming year,” Moody’s analysts Jeffrey Hibbs, Mack Caldwell and William […]

The post Moody’s: Auto Loan Standards Will Be Relaxed in 2014. Leases to Increase As Prices Climb appeared first on The Truth About Cars.

]]>
According to Moody’s Investors Service, increased competition for issuing auto loans will result in lenders taking greater risks and lowering underwriting standards. “Auto lenders will continue their return to higher levels of risk-taking, a trend that emerged in 2013 and will gain momentum in the coming year,” Moody’s analysts Jeffrey Hibbs, Mack Caldwell and William […]

The post Moody’s: Auto Loan Standards Will Be Relaxed in 2014. Leases to Increase As Prices Climb appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2013/11/moodys-auto-loan-standards-will-be-relaxed-in-2014-leases-to-increase-as-prices-climb/feed/ 21
Mainstream Press Finally Worried About Cheap Car Loans http://www.thetruthaboutcars.com/2013/10/mainstream-press-finally-worried-about-cheap-car-loans/ http://www.thetruthaboutcars.com/2013/10/mainstream-press-finally-worried-about-cheap-car-loans/#comments Mon, 14 Oct 2013 16:00:41 +0000 http://www.thetruthaboutcars.com/?p=623585 Months after TTAC started to relentlessly bleat about the glut of money flowing into the auto loan sector, the mainstream media is finally taking notice. Automotive News is finally expressing some worry over the factors that we’ve been discussing for some time: car loan terms are getting longer (to help keep payments low), subprime lending […]

The post Mainstream Press Finally Worried About Cheap Car Loans appeared first on The Truth About Cars.

]]>
Months after TTAC started to relentlessly bleat about the glut of money flowing into the auto loan sector, the mainstream media is finally taking notice. Automotive News is finally expressing some worry over the factors that we’ve been discussing for some time: car loan terms are getting longer (to help keep payments low), subprime lending […]

The post Mainstream Press Finally Worried About Cheap Car Loans appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2013/10/mainstream-press-finally-worried-about-cheap-car-loans/feed/ 155
Fed Reports Auto Loans at Six-Year High, Average Balance Up, Delinquencies Down http://www.thetruthaboutcars.com/2013/08/fed-reports-auto-loans-at-six-year-high-average-balance-up-delinquencies-down/ http://www.thetruthaboutcars.com/2013/08/fed-reports-auto-loans-at-six-year-high-average-balance-up-delinquencies-down/#comments Mon, 26 Aug 2013 15:16:58 +0000 http://www.thetruthaboutcars.com/?p=501206 According to a report issued last week by the U.S. Federal Reserve Bank of New York, car and light truck loan originations have reached a six-year high. Automotive News reports that for the second quarter of 2013, new loans went up 11% to $91.8 billion, including consumers with all credit ratings. U.S. light vehicle sales […]

The post Fed Reports Auto Loans at Six-Year High, Average Balance Up, Delinquencies Down appeared first on The Truth About Cars.

]]>
According to a report issued last week by the U.S. Federal Reserve Bank of New York, car and light truck loan originations have reached a six-year high. Automotive News reports that for the second quarter of 2013, new loans went up 11% to $91.8 billion, including consumers with all credit ratings. U.S. light vehicle sales […]

The post Fed Reports Auto Loans at Six-Year High, Average Balance Up, Delinquencies Down appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2013/08/fed-reports-auto-loans-at-six-year-high-average-balance-up-delinquencies-down/feed/ 62
97 Months And Running http://www.thetruthaboutcars.com/2013/04/97-months-and-running/ http://www.thetruthaboutcars.com/2013/04/97-months-and-running/#comments Mon, 15 Apr 2013 11:00:14 +0000 http://www.thetruthaboutcars.com/?p=484814 8 years to pay off a car? A report by the Wall Street Journal claims that in Q4 of 2012, the average car loan stretched out to 65 months, or just over 5 years. Loan terms were being stretched out over increasingly longer terms too, with credit firm Experian reporting that nearly 1 in 5 […]

The post 97 Months And Running appeared first on The Truth About Cars.

]]>
8 years to pay off a car? A report by the Wall Street Journal claims that in Q4 of 2012, the average car loan stretched out to 65 months, or just over 5 years. Loan terms were being stretched out over increasingly longer terms too, with credit firm Experian reporting that nearly 1 in 5 […]

The post 97 Months And Running appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2013/04/97-months-and-running/feed/ 67
How A New Generation Of Sub-Prime Auto Financing Could Cause Another Catastrophe http://www.thetruthaboutcars.com/2013/04/qe-is-not-just-a-ship-how-a-new-generation-of-sub-prime-auto-financing-could-cause-another-catastrophe/ http://www.thetruthaboutcars.com/2013/04/qe-is-not-just-a-ship-how-a-new-generation-of-sub-prime-auto-financing-could-cause-another-catastrophe/#comments Fri, 05 Apr 2013 14:40:53 +0000 http://www.thetruthaboutcars.com/?p=483661 March was the 5th straight month of a SAAR above 15 million vehicles.  Industry analysts have explained the strength of the market in a number of ways. The need to replace older vehicles is one (new car sales were hit hard during the recession as consumers held on to their vehicles for longer. This also […]

The post How A New Generation Of Sub-Prime Auto Financing Could Cause Another Catastrophe appeared first on The Truth About Cars.

]]>
March was the 5th straight month of a SAAR above 15 million vehicles.  Industry analysts have explained the strength of the market in a number of ways. The need to replace older vehicles is one (new car sales were hit hard during the recession as consumers held on to their vehicles for longer. This also […]

The post How A New Generation Of Sub-Prime Auto Financing Could Cause Another Catastrophe appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2013/04/qe-is-not-just-a-ship-how-a-new-generation-of-sub-prime-auto-financing-could-cause-another-catastrophe/feed/ 69
Is China Headed For Oversupply? Not If The Credit Boys Can Help It http://www.thetruthaboutcars.com/2010/04/is-china-headed-for-oversupply-not-if-the-credit-boys-can-help-it/ http://www.thetruthaboutcars.com/2010/04/is-china-headed-for-oversupply-not-if-the-credit-boys-can-help-it/#comments Wed, 28 Apr 2010 17:01:58 +0000 http://www.thetruthaboutcars.com/?p=354572 Anywhere there’s a gold rush, competitors have to worry about getting caught on the bust-end of a boom-bust cycle. With the growth of China’s car market projected to roll all the way to about 20m units annually, automakers hoping to cash in on booming sales have to wonder whether their investments in Chinese capacity will […]

The post Is China Headed For Oversupply? Not If The Credit Boys Can Help It appeared first on The Truth About Cars.

]]>
Anywhere there’s a gold rush, competitors have to worry about getting caught on the bust-end of a boom-bust cycle. With the growth of China’s car market projected to roll all the way to about 20m units annually, automakers hoping to cash in on booming sales have to wonder whether their investments in Chinese capacity will […]

The post Is China Headed For Oversupply? Not If The Credit Boys Can Help It appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2010/04/is-china-headed-for-oversupply-not-if-the-credit-boys-can-help-it/feed/ 18
Congressional Oversight Panel: Why Did We Bail Out GMAC Again? http://www.thetruthaboutcars.com/2010/01/congressional-oversight-panel-why-did-we-bail-out-gmac-again/ http://www.thetruthaboutcars.com/2010/01/congressional-oversight-panel-why-did-we-bail-out-gmac-again/#comments Fri, 15 Jan 2010 19:33:28 +0000 http://www.thetruthaboutcars.com/?p=341896 The TARP bailout of GM finance partner GMAC is being criticized by a congressional oversight panel [full report in PDF format here], reports the Detroit Free Press. The panel alleges that the Treasury has not yet articulated a specific and convincing reason to support the company… It has never stated that a GMAC failure would […]

The post Congressional Oversight Panel: Why Did We Bail Out GMAC Again? appeared first on The Truth About Cars.

]]>
The TARP bailout of GM finance partner GMAC is being criticized by a congressional oversight panel [full report in PDF format here], reports the Detroit Free Press. The panel alleges that the Treasury has not yet articulated a specific and convincing reason to support the company… It has never stated that a GMAC failure would […]

The post Congressional Oversight Panel: Why Did We Bail Out GMAC Again? appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2010/01/congressional-oversight-panel-why-did-we-bail-out-gmac-again/feed/ 4