Subprime lending is on the rise throughout the auto industry, up 11 percent from the first quarter of last year. From the perspective of many auto dealers, that's a good thing.
David Kelleher, the current chairman of the Chrysler National Dealer Council, says that lower loan standards have opened a gateway to a whole new kind of customer, mainly high-salary professionals who faced financial distress during the recession.
Now, they've recovered. And they're helping the auto industry do the same.
But these higher-risk customers wind up paying higher interest rates, significantly higher than the average interest rate of 4 percent. The Huffington Post reports that these customers are also at heightened risk for scammers.
Here's a look at the challenges they face as the auto industry increases seeks their business.
David Kelleher, the current chairman of the Chrysler National Dealer Council, says that lower loan standards have opened a gateway to a whole new kind of customer, mainly high-salary professionals who faced financial distress during the recession.
Now, they've recovered. And they're helping the auto industry do the same.
But these higher-risk customers wind up paying higher interest rates, significantly higher than the average interest rate of 4 percent. The Huffington Post reports that these customers are also at heightened risk for scammers.
Here's a look at the challenges they face as the auto industry increases seeks their business.
1 Comment