Auto Finance news is reporting that the volume of loans taking place in the auto finance market has reached record high levels. According to Experian, the market has grown by almost 12% since last year. Subprime as well as nonprime increased at a slow, but steady pace gaining roughly 0.25%. In addition to rising volume, delinquency over 30 and 60 days periods have decreased slightly.
To read more about Experian's report head over to the link below.
A recent study by Equifax shows a strong trend between auto finance loans and improving credit. The report looked at two groups of consumers. One group that had subprime auto loans and another that did not.
"Equifax found that over the three-year time period, those consumers with deep subprime credit scores that originated a subprime auto loan showed, in aggregate, a significant increase in their credit score. In fact, those consumers improved their credit score by a median of 52 points, which is a 62.5 percent improvement over the median score change of the group that did not take out a loan."
This article shows that subprime loans when paid off in full can reestablish good credit for consumers. Great news for all our customers!