The music “Crossfire” by Vaughan explains “Money’s tight; nothing’s free”. This is true with regards to the car-buying public of America that is within the recession with falling credit ratings. The quantity of subprime lending options being taken out has remained the very same when much more Americans buy used cars showing that lending in The United States is evolving, reports Wards Auto.
Non-prime and subprime loans a positive sign for credit liquidity
Credit is going to flow, even if it is by subprime. This helps the automotive market that needs to sell automobiles to recover. There isn’t an in-house financing option target coming from dealers. That doesn’t mean that Americans aren’t naturally leaning towards that kind of lending. But product availability remains an issue. Wards interviewed a second-hand car manager for the Al Serra Auto Plaza of Grand Blanc, Mich. His name is Ed Rykulski, and he said, “We employ 18 salespersons in the sales center and buy seriously at the auctions to keep sales at 2009 levels, when we sold 3,212 second-hand units.”
Targeting subprime female buyers with saleswoman
Saleswoman Nancy Koehrman of Taylor Used Vehicle Center near Toledo, Ohio, pointed to a growing trend within the current second-hand automobile sales market: employing much more women as salespeople.
“Women customers prefer women to be handling the vehicle selling and also the finance and insurance side, too, particularly if they’ve been classified as subprime,” Koehrman told Wards.
Of course, women aren’t the only ones interested in loans. Men like subprime used vehicle loans too. 43 million people, or one quarter of U.S. adult consumers, have, reports Fair, Isacc and Co. Inc., a FICO score lower than 599. Lots of the market can be hit here. Those with FICOs from 650-699 are not getting standard automobile loans anymore. This is why the subprime pool is getting larger.
Inventory built up with off-lease stock
Rykulski indicated to Wards the Serra group obtains much of its used stock from off-lease vehicles. The company’s Grand Blanc used automobile 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 vehicles are at the moment common besides non-subprime customers, it is still difficult to keep enough inventory on hand.
Car Deal Expert can help you with used car loans
Additional reading
Wards Auto
wardsauto.com/home/subprime_used_cars_100920/
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