Much more people want subprime used vehicle lending products

The music “Crossfire” by Vaughan details “Money’s tight; nothing’s free”. With all of the falling credit ratings and the recession, it is particularly true within the U.S. car-buying public. The amount of subprime lending options being obtained has remained the exact same when many more Americans purchase second-hand cars showing that lending in The United States is evolving, reports Wards Auto.

Subprime and non-prime loans make credit liquidity look better

Credit is going to flow, even if it is by subprime. This helps the automotive market that needs to sell vehicles to recover. While lenders and dealers with in-house financing choices aren’t targeting the subprime market specifically, the nature of America’s consumer landscape of late has lent itself to such activity. There nevertheless isn’t product availability that is needed. Wards reports Ed Rykulski, car manager for Al Serra Auto Plaza of Grand Blanc, Mich., saying, “We employ 18 salespersons within the sales center and buy seriously at the auctions to keep sales at 2009 levels, when we sold 3,212 second-hand units.”

More subprime female buyers means more saleswomen

Saleswoman Nancy Koehrman of Taylor Used Vehicle Center near Toledo, Ohio, pointed to a growing trend in the current used vehicle sales market: employing much more women as salespeople.

“Women customers prefer women to be handling the car selling and the finance and insurance side, too, especially if they’ve been classified as subprime,” Koehrman told Wards.

It isn’t just women interested in subprime used auto lending products. 43 million individuals, or one quarter of American adult customers, have, reports Fair, Isacc and Co. Inc., a FICO score lower than 599. A lot of the market can be hit here. Consumers with FICOs from 650-699 are frequently being declined for standard automobile lending options, which moves them in the subprime pool.

Inventory built up with off-lease stock

Off-lease vehicles are where a lot of stock comes for the Serra group. Wards interviewed Rykulski who said this. The company’s Grand Blanc used car center is one of the largest of any Ward’s 500 member (dealerships that receive the highest marks from the publication for reliability and a host of other factors). So many people want to get second-hand automobiles that it is hard to keep an inventory full. Even with all the non-subprime customers it is hard to do it.

You are able to get help with second-hand car loan rates with Car Deal Expert

Additional reading

Wards Auto

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