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

Article by Christian A., 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.

If you liked the article, share on:

Topics: united states

Comments

Recommended

The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
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