There are three main factors effecting subprime auto lending in the current market, and many new companies getting into the business. Companies are more likely to lend now than before the credit crisis a few years back, as they have available money to lend on lower-yield loans.
Companies are also more welcome to longer loan periods in today’s market, with up to forty-eight month terms becoming the normal session among auto lenders, and sixty month terms not unheard of.
Increased consumer protection from federal and state law is also becoming an issue, though this has a lesser impact than the other two points. Creditors are mostly more willing to consider subprime lending now than before overall.
Read the full article here: