Auto Lending Rising As Access To Credit Opens Up

by Cameron Aubernon

Published: March 10th, 2015

auto lending rising as access to credit opens up

With auto lending easier to come by these days, bank regulators and analysts are keeping their eyes open for potential signs of trouble.

According to The Detroit Bureau, the Federal Reserve Bank of Cleveland found that newly originated auto loans in Q3 2014 reached $105 billion, the highest level of originations since 2005. The high level of originations are attributed to an increased demand for vehicles and easing lending standards.

Researchers Emre Ergungor and Caitlin Treanor add that those with good and bad credit scores are landing the loans, with banks taking the higher-rated consumers and finance companies going for all levels of risk, especially the subprime consumers.

Other factors driving the new credit boom include increased consumer confidence, job opportunities, and the brief respite in fuel prices. However, the boom has attracted the federal regulators, who are planning to go through the standards and practices of several large lending companies for potential liability and discrimination issues.

#AutoLending #ConsumerDemand #EasyCredit #FederalReserveBankOfCleveland #Originations

Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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13 of 17 comments

28-Cars-Later on Mar 10, 2015

Jake: [fakes accent] How much for the little girl? How much for the women? Father: What? Jake: Your women. I want to buy your women. The little girl, your daughters... sell them to me. Sell me your children!

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- Bigtruckseriesreview @ Youtube on Mar 10, 2015
  
  In some countries a "subprime loan" is a homely 14-year-old.
  
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- Corey Lewis on Mar 10, 2015
  
  Jacque: Combien de dollars Canadienne pour le Peugeot, monsieur? Personne de salle voiture: Oh! $46,000! C'etait un model luxe, pour le testeurs automobiles de journalisme! Jacque: Sacre bleu! Jacqueline: Non, c'est impossible! C'etait un model pour Tim Cain!
  
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Davefromcalgary on Mar 10, 2015

LOL keep the stock photos coming, they are pure comedy in and of themselves.

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- 28-Cars-Later on Mar 10, 2015
  
  SALESMAN: Hi, I'm Rick. So how can I help you folks today? WOMAN: I have some questions and concerns... MAN [WITH EYES LOCKED]: Rick, I am... mesmerized... by you.
  
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- DeadWeight on Mar 10, 2015
  
  @28-Cars-Later Woman (furtively gesturing with index finger while talking): "Like, he thinks I need 4 wheel drive because the Polar Vortices are only going to get, like, really bad, and I can't miss Yoga class or Snubs, like ever..." Salesman: "He's right, you know. Our proprietary NADA weather report forecasts that each successive winter will be both colder & snowier than this year's." Boyfriend: "Her FICO Score is 520, though, and she had her heart set on that Range Rover Sport in Victoria Beckham trim, which is $78,000." Salesman: "Look, that won't be an issue. Let's get you to Mr. Ruggles office - he has some great 96 month financing plans for people such as yourself, and can handle all your needs, from our in-house lender's financing to tru-coat & dealer installed add-ons."
  
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- Lie2me on Mar 10, 2015
  
  @DeadWeight Lol, you've got to get dat Tru-Coat, dontcha know? You betcha
  
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- 28-Cars-Later on Mar 10, 2015
  
  @DeadWeight HOMER: Extended warranty? How can I lose?
  
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- TW5 on Mar 10, 2015
  
  @28-Cars-Later "Baby, hold my hand for a minute." To salesman "I don't think you understand how serious the situation is for us, Mr. Salesperson. We really NEED to buy this new BMW convertible, and after I settle with my ex-husband, we'll have enough to finance over 120-months."
  
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- Kmoney on Mar 10, 2015
  
  These caption contests are fast becoming one of my favourite parts of the site.
  
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Jkross22 on Mar 10, 2015

Pull my finger.

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- Lie2me on Mar 10, 2015
  
  COTD!
  
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87 Morgan on Mar 10, 2015

Him to wife: "babe, I got this, watch me work this sales man" Him to salesman: "we will take your deal with the midwest market adjustment, but only if you lower the price of the window etching to $499. These new Darts are hot, but I don't want to Pay too much for anti theft protection" Salesman: "DAMNIT! Let me go talk to my manager"

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