Car Loans Get Longer, Credit Scores Get Lower, and We're More Reliant on Automakers for Money and Cars Now

In news that will shock precisely no one, the current car blitz is partially fueled by longer loan rates, higher monthly payments and an increasing prevalence to finance our new cars from the automaker themselves — when we’re not renting it from them in the first place.

Experian released Wednesday its data on third-quarter sales and financing and found, on average, that borrowers’ credit scores were at the lowest level since before 2008. According to the credit agency, car buyers had an average credit score of 710 when they financed their car — which happens in 86.6 percent of car transactions, an all-time high.

Buyers opted for longer loans too. According to the data, new car loans longer than six years increased to 27.5 percent for the third quarter, up 17.1 percent from the same period last year. Loans between five and six years accounted for 44 percent of new vehicle financing.

Read more
Explosive Growth For Long Term Auto Loans In Q3 2014

Red-hot auto sales and increasingly pricey cars are generally seen as a sign of a resurgent economy and a consumer base that is finally prospering after years of stagnant wages and poor prospects. But according to data from Experian, much of the growth may come from practices generally regarded as financially unhealthy.

Read more
Repossessions, Delinquencies Up As Oustanding Auto Loan Balances Hit All-Time High

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.

Read more
"All Is Fine In Sub-Prime Land," Says Someone With A Vested Interest In Its Success

The Detroit Free Press paints a pretty clear picture of the automotive lending landscape: auto loan terms are rising, with 1 in 5 loans now lasting longer than 6 years. At the same time, the average credit score for those taking out loans is dropping. Ominous signs for a car market that’s running on the hype of a perpetually increasing SAAR, right? Well, not according to some.

Read more
Auto Loan Delinquencies, Reposessions Up In Q1 2013

Bad news on the subprime front, as credit rating agency Experian reports a rise in delinquencies and repossessions for auto loans in Q1 2013.

Melinda Zabritski offered a rather dubious explanation for the nearly 17 percent rise in repos (as well as the 1.3 percent uptick in 30 day delinquencies and 12.4 percent rise in 60-day delinquencies)

Read more
Sub-Prime Auto Financing, Loan Terms On The Rise

Long-term auto loans, leasing and sub-prime financing all saw increases year-over-year from 2011 to 2012, according to a report by Experian, a consumer credit rating agency. While typically a dry and detail-oriented subject, the area of auto financing gives us some insight into the nature of the new car market and even the economy itself.

Read more
  • MaintenanceCosts Ok, John Galt.We’re a society, we have to set tax policy as a society, and that requires (and amply justifies) deciding how much tax is “enough.” You can play-act the self-reliant individual, but you’ll cry uncle when you encounter the warlords that actually run any place where society doesn’t exist.
  • EBFlex They should be upset, but at whoever designed this turd regardless of the badge on the front.
  • Sgeffe From everything I’ve heard, this stuff was circling the drain before 2020, and the WuFlu was the fatal hit to the jugular!As has been noted, what will all of the purveyors of canapés, shrimp cocktail, and rent-a-bartenders ever do?And can someone please explain why the only place I can put a paragraph break in this commenting system is in the top comment, and not a reply? I think that’s why the comments on here are way down! (At least on an iPhone.)
  • Sckid213 Now would be a good time for a REAL NAME for a new Acura model. This would be like if Caddy named the Lyriq "Allante." Why bring back bad memories.
  • ToolGuy Have you seen Honda's latest business plan? Neither has Honda.