F&I and Showroom, January 2018
www fi magazine com 20 F I and Showroom January 2018 AUTO FINANCE L Loan balances rising above the 1 trillion mark wasnt the big story coming out of the auto finance arena in the third quarter The real stunner was subprime financing falling to its lowest point since 2012 The subprime pullback dates back to the second quarter of 2016 with the auto finance industry doing its part to disprove talk of a subprime bubble ever since In the third quarter the rise in average credit scores for both new and used vehicle financing provided further evidence of the caution finance sources are taking when it comes to their portfolios In fact much of the growth in overall loan balances came out of the superprime and prime tiers But with credit delinquencies rising slightly look for auto finance sources to continue steering their respective portfolios away from the high risk tiers The following is a look at some of the trends that Third quarter data from Experian Automotive shows that the auto finance market gained strength and stability but mostly at the expense of subprime originations BY MELINDA ZABRITSKI GETTYIMAGES COM VAEENMA Auto Finance Registers Subprime Record in Q3
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