US lenders offered some of the easiest credit terms to car buyers

Article by Christian Andrei, on May 31, 2012

The first quarter of 2012 marked a period in which US lenders offered some of the easiest credit terms to car buyers in an effort to attract more borrowers they consider as safe, according to credit research company Experian Automotive, a unit of Experian Plc. Experian also found out that US lenders provided more money to people with subprime credit scores while cutting interest rates and allowing more time to repay. The credit research company also found out that the rates of late payments and repossessions by lenders went down in the first quarter of 2012.

Because the credit terms have become more relaxed, it became easier for individuals to purchase cars – a situation favourable to car dealers, makers and the economy, according to Melinda Zabritiski, director of automotive credit for Experian. It carries one big risk though, as bank could suffer from losses if their borrowers fail to keep up with their payments. Easier credit terms also helped carmakers sell more vehicles in the US by 10 percent through April, prompted by the industry’s recovery from the recession. Studies show that car loans are safer to make than mortgage and credit card loans during the recession, since borrowers usually prioritize car payments because they need vehicles when they go to work or apply for employment.

Topics: united states

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries