Smart Borrower Blog

Archive for the ‘Used Car Loans’ Category

Auto Loan Origination Growth Takes a 9-Year Tumble

Feb 28th, 2018 @ 9:12 PM by Amber Nelson

Americans bought fewer vehicles in the fourth quarter of 2017 than the previous year, according to the New York Fed Household Debt and Credit Report, with the biggest annual decline in close to a decade. During the 2017 fourth quarter, there were $142 billion in auto loans and leases originated for new and used cars […]

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Car Loan Delinquencies Continue to Rise Even As Unemployment Falls

Nov 29th, 2017 @ 9:35 PM by Amber Nelson

More and more Americans are falling behind on their car loan payments, according to new data from the New York Federal Reserve , a sign of distress in the auto lending industry. At a time when the unemployment rate (now at 4.1%) is better than it has been in over 17 years, U.S. consumers should […]

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Deep-Subprime Auto Loan Delinquency Rates Hit Pre-Recession Levels

Sep 6th, 2017 @ 3:21 PM by Amber Nelson

Auto-loan borrowers with the worst credit are falling behind on their payments at a rate not seen in a decade, according to data from credit reporting agency Equifax. Deep-subprime borrowers, as they are called in the industry, have been defaulting on their auto loans at alarming rates. “Performance of recent deep subprime vintages is awful,” […]

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Wells Fargo Faces Fraud Charges after Auto Insurance Scandal

Aug 9th, 2017 @ 8:48 PM by Amber Nelson

Wells Fargo has found itself embroiled in yet another scandal, one that could potentially lead to hundreds of millions of dollars in legal losses. The New York Times exposed an internal Wells Fargo report that reported the bank had charged more than 800,000 of its auto loan customers for insurance they did not need or want. […]

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Auto Loans Terms Lengthen as Average Affordability Drops

Jun 28th, 2017 @ 9:16 PM by Amber Nelson

The majority of Americans cannot truly afford to buy a new car, according to a new study by Bankrate.com http://www.bankrate.com/auto/new-car-affordability-survey/. The result is longer car loan terms, with some stretching as far as 8 years. “The main point of this research is to illustrate how Americans are having to overextend themselves to pay for a […]

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U.S. Auto Loan Industry Data Continues to Raise Red Flags

Feb 22nd, 2017 @ 10:11 PM by Amber Nelson

Even as U.S. sales of cars and trucks has risen to new heights in the past year, delinquencies on auto loans are also making records and the number of loans made to subprime consumers has jumped dramatically in recent years. At the end of 2016, Americans held almost $1.2 trillion in car loan debt, a […]

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Subprime Auto Defaults Grow by Double Digits

Aug 31st, 2016 @ 8:55 PM by Amber Nelson

American consumers with bad credit are falling behind on their car payments at an increasingly high rate, according to Fitch Ratings, a sign that the subprime market may have peaked for the foreseeable future. In July 4.59 percent of subprime auto loan borrowers (those with credit scores of 600 or lower) were 60 days or […]

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Auto Loan Industry Continues to Boom but Not Without Risks

Jul 20th, 2016 @ 8:10 PM by Amber Nelson

The U.S. auto lending industry has been busy this year. Car loans and leases grew to a total value of $1 trillion a few months ago, with large lenders like JP Morgan Chase and Wells Fargo seeing almost double-digit growth in volume since 2015. And yet this stellar rise carries a lot of risk of […]

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Younger Buyers Return to the Auto Loan Market

May 25th, 2016 @ 11:56 AM by Amber Nelson

Although the Great Recession may have kept many Millennials from buying cars for several years, today those younger consumers are returning to the auto loan market in ever-increasing numbers, according to data from LendingTree. During the past year, 34 percent of all auto loan requests have come from Millennials – those aged 18 to 34 […]

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Fitch: Dip in Auto Delinquencies Will Not Last

Apr 20th, 2016 @ 8:29 PM by Amber Nelson

The percentage of seriously delinquent auto loans fell in March, but Fitch Ratings says that it was just a seasonal drop that will not become a trend. Seriously delinquent car loans – those with late payment of 90 days or more – reached a 20-year high in February of 5.16 percent before declining in March to […]

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