Next subprime bubble to burst: auto loans

#subprime auto loans


Subprime auto loans are on the rise and, just like subprime mortgages, are claiming untold victims.

Samuel Perez, 32, is still dealing with fallout from his experience with a subprime loan five years ago, he told The Post.

Officials at Woodside, Queens, dealership Auto Palace offered him an 8.49 percent interest rate on a BMW, with a teaser rate of 6 percent after six months. Perez worked out a financing deal that included monthly payments and trading in an Audi and rolling its payments into the new car.

The rate never made it down to 6 percent since the BMW didn’t work properly, so Perez returned it. But the dealer wouldn’t give him back the Audi, which it had not paid off, or release him from the debt on the BMW, even though he’d never received title.

Perez found himself scrambling to borrow a car to get to work — while fending off bills on two cars he didn’t have, or own, which hurt his already low credit score, he told The Post.

This situation is not limited to small lenders, either — large banks are jumping into the fray.

Just last week, Ally Financial’s new chief executive hit the accelerator into the roughly $300 billion market for subprime auto loans.

Jeffrey Brown said Ally, the biggest player in the auto lending market, wants to boost the amount of subprime auto lending to as much as 15 percent of all loans, as US automakers reported a nearly 14 percent sales jump in January for new cars over last year’s levels.

With interest rates that can at times exceed 20 percent, subprime auto loans are a risky but popular revenue stream for banks — and often a devastating move for consumers.

The marketplace in which auto loans are made to consumers with a credit score below 640 is so shady that multiple regulators, from New York Department of Financial Services head Benjamin Lawsky to Manhattan US Attorney Preet Bharara, are investigating possible abuses.

Regulators have requested documents from Ally and other major auto lenders Santander Consumer USA and GM Financial regarding securitization of subprime auto loans.

Perez turned to Brooklyn attorney Ahmad Keshavarz for help. Keshavarz filed a lawsuit against Auto Palace and two other defendants alleging a range of harms, including violations of the Fair Credit Reporting Act, breaches of warranty and violations of the Truth in Lending Act, according to court documents. Auto Palace could not be reached for comment.

The defendants settled, and Perez bought another car.

In 2012, the Queens County District Attorney’s Office charged Auto Palace and its owners with $730,000 in sales tax fraud, and its former finance manager with defrauding customers out of $115,000.

The owners pleaded guilty in 2013 and paid $150,000 to the New York Department of Taxation and Finance. The former finance manager pleaded guilty to grand larceny and was sentenced to two to four years in jail.

Civil cases are still pending against Auto Palace by the Consumer Affairs Department and Department of Motor Vehicles.

“I learned from my mistake,” says Perez.

There are many signs that the subprime auto loan market is reaching unsustainable levels. Delinquencies, average loan balances and loan terms are all increasing nationwide.

In New York, the share of subprime loans has grown to 18.6 percent of consumers from 14.2 percent in 2009, and average loan size is up 5 percent to $18,874, according to Equifax.

“Loans will start blowing up,” says Wolf Richter, Web publisher of

New list reveals safest second hand cars

#2nd hand cars

New list reveals safest second hand cars


A new list of the safest used cars will provide essential information to Victorians, rating the performance of vehicles in protecting occupants and other road users in a crash, Roads and Ports Minister Tim Pallas announced today.

Mr Pallas today released the 2010 Used Car Safety Ratings with Consumer Affairs Minister and Member for Mitcham Tony Robinson at the Whitehorse Accident Repair Centre in Vermont.

He said the ratings were based on work by the Monash University Accident Research Centre (MUARC) in conjunction with the TAC, VicRoads and the RACV.

“We understand Victorians are concerned about safety on our roads, which is why the Brumby Labor Government is taking action to drive down the road toll,” Mr Pallas said.

“The Used Car Safety Ratings are an excellent resource for motorists looking to purchase a safe second-hand vehicle because they measure the performance of these cars in real crashes.

“Australasian research indicates that if each motorist upgraded their vehicle to the safest in its class, road trauma would drop by about one third.

“All categories have at least one vehicle that was rated ‘good’ (four stars), while more than a third (72) of the 199 vehicles were rated ‘good’ or ‘excellent’ (five stars).

“It is no surprise the vehicles with the best safety features provided the best protection from injury in a crash. Regardless of the size and category of the vehicle, the cars built without safety in mind are the ones that provide the least protection for their occupants and other road users.”

The ratings were calculated by MUARC, which analysed the injuries of more than 5.4 million people involved in crashes and one million injured road users in police-reported road crashes in New Zealand and Australia between 1987 and 2008.

Mr Robinson said the Brumby Labor Government was committed to improving road safety and helping Victorian drivers choose safer vehicles that provided important benefits.

“The advice to all drivers is to check out the used cars list to help ensure they are purchasing the safest possible car to protect themselves and others on the road,” Mr Robinson said.

MUARC Senior Research Fellow Dr Stuart Newstead said the ratings reflected how well individual models protect their occupants and other road users – including cyclists, pedestrians, motorcyclists and drivers of other vehicles – from injury in the event of a crash.

TAC Road Safety Manager Samantha Cockfield said while all motorists wanted to drive a car that kept the occupants safe in a crash, it was important to consider the impact that vehicle would have on other road users in the event of a crash.

“These ratings will help all motorists to choose vehicles that can achieve both these objectives,” Ms Cockfield said.

RACV Vehicle Engineering Manager Michael Case said European and Japanese designs featured heavily among the best performing cars, particularly newer models.

“Of the Australian made cars, the 2006-2008 Toyota Camry and Aurion and the 2004-2008 Ford Territory scored an ‘Excellent’ rating,” Mr Case said.

Five-star used cars in the small, medium and large car range include:

Small: Chrysler Neon 1996-99; Mazda MX5/Eunos Roadster 1998-2005; Peugeot 307 2001-08; Volvo S40/V40 1997-2004; and Volkswagen Golf/Jetta 2024-08.

Medium: Audi A4 2001-08; BMW 5 Series E39 1996-2003; Mazda 6 2002-07; Mercedes Benz C-Class W203 2000-07; Honda Accord 2003-07; Peugeot 406 1996-2004; Saab 900/9-3 1994-2002; Saab 9000 1986-97; and Subaru Liberty/Legacy/Outback 2003-08.

Large: Toyota Aurion 2006-08 and Toyota Camry 2006-08.

The 2010 Used Car Safety Ratings brochure is available here or at RACV shops. People can also search this site to find out more.

New Cars

#new car deals

Search New and Used Cars for Sale


  • The Five Best Cars for New or Young Drivers

TOP 5 CARS FOR YOUNG DRIVERS – Young and new drivers are always excited about gaining independence and being able to drive on their own. Each driver will.

  • Be confident in buying online

    BE CONFIDENT IN BUYING ONLINE – Buying a new car online is, without question, a potentially daunting proposition; after all, for many people, it will be the.


    BUYACAR USED AND NEW CARS offer fantastic deals on brand new UK cars, direct from main car dealerships.

    Many people make their new car choice at their local dealership before coming to Buyacar for a deal on the same new car.

    And if you want to trade in your used car we can handle the whole part-exchange process.

    The final price of your brand new car, including your trade in, can be calculated by using our live online car price checker.

    In short, we make it easy for you to save money on your brand new car.

    We are now offering a range of New Vans. box vans, Fridge Vans. roof vans and many more.


    How can we bring you better deals and cheaper new cars than anywhere else?

    We work with new car dealers and brokers who specialise in selling a wide range of cars at discount prices. These dealers and brokers are focused on volume – they want to sell as many cars as possible – whereas your local dealer is focused on his margin i.e. what he can make on each individual car.

    The result is that our dealers and brokers can offer greater discounts than your average local dealership. The cars are exactly the same, with the same delivery times and warranties.

    The only discount is the big new car discount that we can provide.


    If you’re trying to find yourself a new or used car, you’ve come to the right place.

    It pays to do your research when buying a new or used car.

    What may seem like a good idea at first isn’t always the best choice in the long run.

    We suggest that you:

    1. Decide on the features you want on your car
    2. Use our new car search to get a short-list of cars
    3. Compare those cars
    4. Decide on which one is right

    To elaborate.


    This is where you need to be completely honest with yourself about how you’re going to be using your car. Prioritise the things you need. You might ask yourself these questions for example:

    • In what circumstances am I going to use the car?
    • What type of car will suit my needs?
    • What features do I need. i.e. sunroof or performance
    • How can I realistically afford to spend?


    You’ll then need to click on the ‘new cars’ tab at the top of the page to get to the advanced car search page. From there you’ll be able to select the feature list you’ve created to create a smaller and smaller list of results.

    When you have less than 30 your results will show


    Once you’ve got your short-list the next thing to do is to compare the new cars that you’ve got to see how they differ. If you have any preferences within the resulting cars try selecting them by clicking the tick box next to the car in the results list and clicking the compare button. This will give you a list of the car’s features to compare side by side.


    Ultimately, this is down to which matches your needs and your budget. If you need help at this point, someone from the buyacar sales team can help you. Alternatively, if you have a favourite 2 or 3 then try going through the process to quote so that you can get an idea of the final prices once you’ve chosen all your options as this can add a fair bit to your final price.

    There’s almost always a clear choice of a new car at this point but if not, try reading the new car reviews for each model to see if there’s any more information there to help you decide.

  • New Study Reveals States With Lowest Auto Loan Rates

    #lowest auto loan rates

    New Study Reveals States With Lowest Auto Loan Rates

    Just the Facts:

    • The U.S. states with the lowest average auto loan rates are Michigan, Oregon and Alaska, according to a new study by
    • The study said the states with the highest average rates are Rhode Island, Connecticut and New Jersey.
    • found the nationwide average interest rate for a loan on a new vehicle is 3.65 percent.

    LOS ANGELES A new study by says the U.S. states with the lowest average auto loan rates are Michigan, Oregon and Alaska. The states with the highest average rates are Rhode Island, Connecticut and New Jersey.

    The study found that the average interest rate nationwide for a loan on a new vehicle is 3.65 percent. In general, states on the West Coast have the lowest overall rates, while the Northeast has the most states with rates of 4.01 percent or higher. partnered with Informa Research Services to gather online data from more than 4,000 U.S. banks and credit unions. The study looked at the base interest rates for new-car loans as of July 24, 2013, for terms of 36 months, 48 months and 60 months, then averaged the findings from each state to arrive at the rankings.

    Michigan, the traditional home of the U.S. auto industry, turned out to have the lowest statewide average: 3.03 percent. The best rates in Michigan were 1.49 percent for 36 months, 1.49 percent for 48 months and 1.75 percent for 60 months.

    Oregon and Alaska each averaged 3.04 percent, according to the study. Rounding out the top 10 were New Hampshire, South Carolina, Vermont, Oklahoma, Utah, Washington and North Carolina, with rates ranging from 3.08 percent to 3.31 percent.

    The worst rates were found in Rhode Island, which averaged 5.11 percent. Other bottom-10 results included Connecticut, New Jersey, Massachusetts, Louisiana, West Virginia, Delaware, Mississippi, Pennsylvania and the District of Columbia, with rates from 4.82 percent to 3.95 percent.

    Although the study makes for interesting reading, rates within each state vary widely, so the compiled averages don’t tell consumers the whole story. A car shopper in Rhode Island, the state with the worst average, may find a local financial institution offering a rate equal to or better than the lowest one in Michigan, which had the best average.

    As advises, “When it comes to affordable financing, there are always great options available on the local level, and it’s up to the borrower to find them.”

    In a recovering economy it’s particularly important to shop around for the best rate. For some time, many automakers have helped keep interest rates low through subsidies and incentives that increased sales. As the economy improves, says, interest rates are on the rise.

    But for now, the site notes, “car buyers continue to enjoy some of the lowest financing options available.” It just takes diligent comparison shopping to root out the best deals.

    Edmunds says: As always, it pays to do your homework before walking into a lender’s office or car dealership.

    No credit auto loans

    #no credit auto loans

    Getting a Car Loan with No Credit

    As an auto loan applicant with no credit history under your belt, many car lenders will tend to see you as a high risk candidate when deciding whether to approve you for the loan you need.  Fortunately, we work with a comprehensive network of lenders who are often willing to extend auto loans to students, first-time car buyers, and other people with no credit.

    To maximize your odds of being approved and minimize the interest rate you ll pay, we recommend following the 3 guidelines listed below.  Note:  these are NOT mandatory for submitting your application through our service.  If you would like to get started now, click here:  Apply Online .

    Find a Cosigner: by finding a trusted person with established credit to cosign your auto loan, you will no longer be applying for a no credit car loan per se at least not in the eyes of lenders.  They will be much more likely to approve your auto loan at an affordable interest rate.  Most applicants with limited credit ask a parent, older sibling, or other trusted relative to cosign for them.  In the case of a secured loan, the cosigner is typically only held responsible for whatever portion of the debt the collateral asset does not cover.  But remember:  the cosigner s responsibility is a significant one.

    Prepare a Down Payment: although some lenders in our network offer “no money down” auto loans, we encourage you to save up a 10-20% down payment if possible.  Alternatively, the value of a vehicle trade-in could be used as down payment.  Either way, putting money down will cut your monthly payments, stave off negative equity, and potentially allow for more favorable interest rates and terms.

    Apply Online: our state-of-the-art online application eases the hardest part of financing a car:  getting approved.  When you submit your application, advanced data matching technology works to match you to the best car lender based on factors such as your location, credit standing, income, and down payment amount. It takes only 2-3 minutes, is protected by 128-bit SSL encryption, and all but eliminates traditional paperwork.

    New and Used Cars For Sale

    #auto for sale by owner

    Got a car to sell?

    KSL Cars prides itself on offering the premier local online classifieds service for your community. As with any classifieds service you should make every effort to verify the legitimacy of all offers, from both buyers and sellers. Learn the warning signs and protect yourself. Click here for more info.

    As with any classified ad service, ensure that you have made every effort to verify the legitimacy of all offers, from both buyers and sellers. Learn the warning signs, which can include:

  • Buyer/Seller explains that they are currently out of the country.
  • Buyer/Seller offers to pay with a money order or cashiers check for significantly more than the asked for price.
  • Always verify the item’s condition before paymentBuyer/Seller requests that the payment be wired, submitted online, or cashiers check sent, and that the item will require delivery.
  • Buyer/Seller explains that a third party or service will pick up or deliver the item.
  • Email inquiry is poorly written, generic, or strange sounding.
  • Offer is simply too good to be true.
  • Seller says that KSL will handle the transaction. KSL is NEVER involved in any transaction between buyer and seller.
  • Click here to get even more info on how to protect yourself.

    * Standard listings are free for up to 2 cars. Additional cost for Featured Ads, advertising space, or more than 2 cars. These terms may change without notice. Contact us for more details.

    New & Used Car Loan Options – Wells Fargo

    #used auto loans

    Used Car Loan (private party)

    Specialty vehicle financing

    Lease buyout

    Find out how you can purchase a car that you are currently leasing with a Wells Fargo lease buyout option.

    Financing your next new or used car can be quick and easy. Discover the benefits of working with us and find a vehicle loan option that may fit your needs.

    • Credit decisions in as little as 15 minutes and same-day funding available
    • There are no out-of-pocket costs or fees when you apply
    • Quickly access the finances you need to get your vehicle, sometimes within 1-2 days
    • We have a variety of options for all customers
    • We have over 65 years of vehicle financing experience to help you reach your goal

    Our cars and our stories

    From love at first drive to exhilarating highway adventures, read how these Wells Fargo employees have experienced the joys of car ownership, giving them firsthand knowledge of what it means to truly be behind the wheel.

    New & Used Auto Parts in New Mexico

    #a-1 auto parts

    A-1 Auto Recyclers

    New Used Auto Parts In Kirtland NM

    Originally established in 1981, A-1 Auto Recyclers has been a family owned and operated business, specializing in the purchase and resale of wrecked or otherwise unwanted vehicles from private individuals, tow yards, and auctions.

    Over 2,000 vehicles are included in the current inventory and parts from alternators and starters, engines and transmissions to tires, suspensions and much more are made available for purchase at attractively discounted prices.

    Some new parts are available and others can easily be ordered when requested by customers. Glass specialists are also on hand to complete installation of new and used windshields and windows. A1 is known for its ability to provide the correct parts for customers, the first time, with an expert and friendly staff, and a fast turn-around.

    All parts have warranties and can be shipped worldwide. The staff at A1 is willing to travel up to 60 miles to transport a purchased vehicle.

    We offer military discounts of 10% with a valid ID.

    Which Would You Prefer – Advance Auto or RockAuto Discounts?

    #auto parts discount

    Which Would You Prefer Advance Auto or RockAuto Discounts?

    Did you ever considered to think how much time you spend behind your wheel? Because this way you`ll acknowledge if driving a car is among your passions. If this should be the case, then you may be a person from the category of those who purchase parts from online auto retailers such as Advance Auto Parts or RockAuto. Then you probably would like to know which of the two brands provide better services when it comes to discounts on auto parts.

    There Are Other Auto Parts Discounts Out There

    For customers who didn`t managed to have their fees on shipping minimized but would still be interested in free shipping, it might be a smart move to turn to different types of auto parts discounts, like AutoZone discounts, Pep Boys discounts or Kragen discounts. Actually, probably best possible choice would be AutoZone discounts as it`s seen to be the most popular one from the list above. Take a quick look at the Auto Zone coupon deals that include free shipping listed on RetailMeNot:

    • $10 OFF On $30+ / Free Shipping On $75+: TJG13
    • $20 OFF On $60+ Free Shipping On $75+: MFD13
    • 20% OFF Sitewide + Free Shipping On Purchases of $75+: PERKSPOT
    • Oil Specials + Free Shipping On Orders of $75+

    Keep in mind that this is only a basic list of coupon deals and that in fact there you`ll find many more from which to choose. The ones above list just the ones that have the free shipping option included into them.

    Which Would You Prefer – Rock Auto Discount or Advance Auto Parts Discounts?

    Don`t you are a bit curious to know how RockAuto can compete with Advance Auto Parts when it comes to discounts on auto parts? Well, let`s turn again to and see what Rock Auto discount code they list.

    • 5% OFF Already-low Prices: 3393425730965185 . Expiration Date 09/20/15
    • 5% OFF Sitewide: 3337099429280789 . Expiration Date 09/06/15
    • 5% OFF Your Order: 3352510524942350 . Expiration Date 09/13/15
    • 5% OFF Your Purchase: 18DF53BB27E8AA . Expiration Date 11/10/15

    Perhaps the best thing when it comes to these often released 5% RockAuto discount code deals is that you can get discounts on any auto parts you want with them. The bad news is that the 5% discount is the only one offered by RockAuto for now, at least that`s what we learn on There are no 10% discounts and no free shipping discount codes. But who knows? Maybe in the near future, things might change.

    Let`s take another look at what discount code Advance Auto are available on RetailMeNot:

    • 30% OFF $50+ Sitewide: TRT30
    • $40 OFF $100+ Standard Priced Items: TRT41
    • 20% OFF Every Product: PS20
    • $25 Off Orders Of $75+: UPROMISE124

    You probably think the same way most people think, and that is that Advance Auto Parts provides much better discounts than RockAuto does. There`s no question about it that there will always be a matter of debate because different customers are interested in different types of discounts for different auto parts. The choices will always be different from one customer to another. Even so, I think you`ll agree with the fact that most customers out there will always choice the discount that offer at least 25% off instead of just 5% off, right? Besides these discounts which are obviously bigger, Advance Auto Parts offers other great deals like “Up to $50 Back with Rebates Rewards,” which RockAuto doesn`t even come close to.

    One of the aspects in which Rock Auto stays better in the services they provide is that they offer very cheap prices on their auto parts. Probably the other one would be the fact that the 5% discount codes offered are released more often than those from Advance Auto.

    So, What Do You Think?

    So, which one would you prefer from these two – Rock Auto discounts or Advance Auto Parts discounts. Besides the obvious choice maybe you have a different opinion for some reason. If you do, would you care to share it with us?

    New & Used Auto Parts from Japan

    #japan auto parts

    New & Used Auto Parts from Japan

    New & Used auto parts assisting

    Japan Partner offers used auto parts only to Europe and Africa. New auto parts are offered to Asian countries only.

    We can also assist you with finding new and used auto parts if you need them for the damaged cars you decide to buy from us. Once these parts are purchased – we can put them into your car so you don’t have to pay shipping for these parts and will receive them together with the car! Japan Partner is one of the few companies, which offer this kind of service.

    Used Auto Parts sold in Bulk

    Together with our reliable partners we were assisting numerous companies around the world with their ever-increasing demand for the used auto parts for Japanese vehicles which are usually ordered either in 40ft or 20 ft containers. We can assist you in the following two ways:

    1. According to your model list we can prepare and dismantle with our experienced professional staff used spare auto parts for either 20ft or 40 ft container. In addition to dismantling we will also load the used parts into container and arrange the shipment so you don’t have to worry about making any of the arrangements. Once the payment is settled the documents will be promptly sent to you. Please let our sales manager know if you have any questions about the above-mentioned way of ordering parts.
    2. You can send your team (usually 2 persons) to our equipped for dismantling yard so they could inspect and dismantle when necessary the cars on their own and assure the quality level you are satisfied with. We can assist your staff with necessary VISA support and will provide place to live during their stay. Please let our sales manager know if you have any questions about the above-mentioned way of ordering parts .

    Thank you and we look forward doing business with you!