Tuesday, September 28, 2010

Many more people interested in subprime second-hand car loans

The music “Crossfire” by Vaughan details “Money’s tight; nothing’s free”. We can see this clearly with car-buying Americans. Credit scores are going down, and the recession proceeds. Based on Wards Auto, the financing may be changing in America considering there are much more second-hand automobiles bought however the exact same amount of subprime lending products being taken out.

Optimistic outlook for credit liquidity with subprime and non-prime loans being made

Autos have to sell to make the automotive market get better when credit has to flow, whether it is subprime or not. U.S. customers seem to be doing more with subprime financing although lenders and dealers with in-house financing aren’t targeting it. But product availability remains a problem. Ed Rykulski, used car manager for Al Serra Auto Plaza of Grand Blanc, Mich., told Wards that “We employ 18 salespersons within the sales center and buy heavily at the auctions to keep sales at 2009 levels, when we sold 3,212 used units.”

Subprime female buyers targeted with saleswomen

Much more women are being hired as saleswoman claims Nancy Koehrman of Taylor Second-hand Vehicle Center near Toledo, Ohio.

“Women customers prefer women to be handling the car selling and the finance and insurance side, too, particularly if they’ve been classified as subprime,” Koehrman told Wards.

It is not just women interested in subprime second-hand car loans. Fair, Isacc and Co. Inc. suggests that more than one quarter of American adult consumers (many more than 43 million people) have FICO scores of 599 or lower. Thus, there’s a huge market to be tapped. The the subprime pool is getting increasingly more people as automobile lending options are being declined to those with FICOs from 650-699.

Off-lease stock building more of an inventory

Off-lease cars are where lots of stock comes for the Serra group. Wards interviewed Rykulski who said this. The company’s Grand Blanc used car center is one of the largest of any Ward’s 500 member (dealerships that receive the highest marks from the publication for reliability and a host of other factors). Unfortunately, as used automobiles are currently common even with non-subprime customers, it continues to be difficult to keep enough inventory on hand.

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