What bubble, subprime auto loans.#Subprime #auto #loans


What bubble? Subprime vehicle loans hit Q1 10-year low; 30-day delinquencies drop

June 7, 2017 by Subprime auto loansMelinda Zabritski

Subprime auto loans

When discussing automotive lending, it seems like one term is on everyone’s lips: “subprime auto loan bubble.” There’s always someone who claims that the bubble is bursting. But a level-headed look at the data shows otherwise.

According to our Q1 2017 State of the Automotive Finance Market report, 30-day delinquencies dropped and subprime auto lending reached a 10-year record low for Q1. The 30-day delinquency rate dropped from 2.1 percent in Q1 2016 to 1.96 percent in Q1 2017, while the total share of subprime and deep-subprime loans dropped from 26.48 percent in Q1 2016 to 24.1 percent in Q1 2017.

The truth is, lenders are making rational decisions based on shifts in the market. When delinquencies started to go up, the lending industry shifted to more creditworthy customers. This is borne out in the rise in customers’ average credit scores for both new and used vehicle loans:

  • The average customer credit score for a new vehicle loan rose from 712 in Q1 2016 to 717 in Q1 2017.
  • The average customer credit score for a used vehicle loan rose from 645 in Q1 2016 to 652 in Q1 2017.

In a clear indication that lenders have shifted focus to more creditworthy customers, super prime was the only risk tier to grow for new vehicle loans from Q1 2016 to Q1 2017. Super-prime share moved from 27.4 percent in Q1 2016 to 29.12 percent in Q1 2017. All other risk tiers lost share in the new vehicle loan category:

  • Prime — 43.36 percent, Q1 2016 to 43.04 percent, Q1 2017.
  • Nonprime — 17.83 percent, Q1 2016 to 16.96 percent in Q1 2017.
  • Subprime — 10.64 percent, Q1 2016 to 10.1 percent in Q1 2017.

For used vehicle loans, there was a similar upward shift in creditworthiness. Prime and super-prime risk tiers combined for 47.4 percent market share in Q1 2017, up from 43.99 percent in Q1 2017. At the low end of the credit spectrum, subprime and deep-subprime share fell from 34.31 percent in Q1 2016 to 31.27 percent in Q1 2017.

The upward shift in used vehicle loan creditworthiness is likely caused by an ample supply of late model used vehicles. Leasing has been on the rise for the past several years (and is at 31.06 percent of all new vehicle financing today). Many of these leased vehicles have come back to the market as low-mileage used vehicles, perfect for CPO programs.

Another key indicator of the lease-to-CPO impact is the rise in used vehicle loan share for captives. In Q1 2017, captives had 8.3 percent used vehicle loan share, compared with 7.2 percent in Q1 2016.

In other findings:

  • Captives continued to dominate new vehicle loan share, moving from 49.4 percent in Q1 2016 to 53.9 percent in Q1 2017.
  • 60-day delinquencies showed a slight rise, going from 0.61 percent in Q1 2016 to 0.67 percent in Q1 2017.
  • The average new vehicle loan reached a record high: $30,534.
  • The average monthly payment for a new vehicle loan reached a record high: $509.

Auto Lenders, Collateral Management GPS Tracking, subprime auto lenders.#Subprime #auto #lenders


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Lenders hit the brakes on subprime auto loans, subprime auto lenders.#Subprime #auto #lenders


Lenders hit the brakes on subprime auto loans

Subprime auto lenders

Lenders and finance companies have dramatically pulled back the number of loans they issue to borrowers with the poorest credit records.

A new report by Experian shows the number of loans written in the first quarter for borrowers with subprime and deep subprime credit ratings fell to a 10-year low. Collectively, auto-loan originations in those two categories dropped 8.6 percent in the first quarter.

“It does appear the industry is policing itself a little bit more,” said Melinda Zabritski, Experian senior director of financial solutions. “We started to see delinquencies go up, and lenders really seemed to respond especially in Q1 of this year by tightening up a little bit.”

The pullback in loans to those with credit scores under 600 echoes reports from auto dealers about lenders tightening credit standards.

In its monthly dealer survey, UBS found almost a third of the dealers questioned reported tighter credit standards, the highest level measured in the survey since 2009.

Despite the slowdown in new loans to subprime and deep subprime borrowers, those with the poorest credit ratings still owe more than $213 billion on the vehicles they’re driving, just under 20 percent of the $1.08 trillion owed on open auto loans.

Last week, Federal Reserve Governor Lael Brainard warned about the potential for more subprime auto loan defaults.

“Underwriting appears to be quite lax last year in subprime auto lending,” said Brainard. “Delinquencies rates suggest some borrowers are struggling to keep up with payments.”

The latest data from Experian supports Brainard’s point. In the first quarter, the 60-day delinquency rate jumped almost 10 percent, according to Experian. By comparison, the 30-day delinquency rate fell 6 percent.

Still, with fewer than 1 percent of all auto loans being two months delinquent, Zabritski believes warnings about a subprime bubble suddenly popping are overstated.

“I don’t believe we are in a catastrophic state,” she said. “Everyone always talks about lenders having short memories and forgetting from the past, but again we really started to see that pullback and it just really continued into the first quarter.”

Subprime auto lenders


Auto Industry Benefits For Now From Subprime Loans: NPR, subprime auto loans.#Subprime #auto #loans


Auto Industry Benefits For Now From Subprime Loans

Subprime auto loans

A factor in the auto industry’s record sales the past 2 years has been the return of loans to borrowers with less than perfect credit. This has led some to worry about a bubble in subprime auto loans.

RACHEL MARTIN, HOST:

Subprime lending is back. We’re not talking about homes this time. Automakers and banks have been extending more credit to those with less than perfect credit scores, and that has some worried about a subprime car bubble. Here’s NPR’s Sonari Glinton.

SONARI GLINTON, BYLINE: As much as I love late-night talk shows, I know that as a reporter, whenever a late-night comedian sets his or her sights on my beat – cars and the economy – I’m going to have a lot of explaining to do. Here’s John Oliver talking about car loans on HBO’s “Last Week Tonight.” Remember, it’s HBO, so there will be bleeps.

(SOUNDBITE OF ARCHIVED RECORDING)

JOHN OLIVER: And this feeding frenzy over subprime customers now includes big lenders, like Santander and GM Financial. They have both expanded their subprime auto financing. And you might be wondering, why the [expletive] is everyone in such a hurry to lend money to people with bad credit? I mean, sure.

GLINTON: To help answer Mr. Oliver’s question, we turn to.

LACEY PLACHE: OK, hi. I’m Lacey Plache, chief economist at edmunds.com.

GLINTON: Chief economist – is that a promotion?

PLACHE: No, I’ve always been the chief economist.

GLINTON: Economist, not comedian, Plache says. The reason why the industry is looking to sell cars to people with less than stellar credit is, well, because jobs.

PLACHE: There are definite benefits to having access to credit, especially for an automobile because that really gives people a lot more options in terms of work.

GLINTON: For many millions of Americans, the only way to get to work is to drive yourself there. Plache says during the economic collapse, access to credit dried up, and that hurt people with poor credit scores. Poor credit means below 650. Now, you could easily fall into that category if you miss a few credit card payments. As the banks and the car companies extend credit to a wider range of people, they’re going to take on more risk.

PLACHE: You are going to see higher delinquency rates, higher defaults than you did during the days where the auto lenders were really focusing the majority of their efforts on super-prime and prime. And, you know, I think there’s some love of drama, right? Some people like to worry, and, you know, this is something to point to.

GLINTON: Now, comparisons between the credit market for cars and real estate are difficult because the car market is one-tenth as large.

ALEC GUTIERREZ: I wouldn’t say that the sky is falling, but I think it is fair to say that there has been an expansion in subprime lending overall. And that’s true of both new car purchases, used car purchases and leasing.

GLINTON: Alec Gutierrez is senior analyst with Kelley Blue Book. He points out that the risks for lenders are lower for autos than for real estate. And cars are easier to repossess, and that’s one reason consumers often pay their car loan first. It’s also a way for consumers to establish credit.

GUTIERREZ: You still have a lot of people that are rebuilding credit that have gone through foreclosures and, thus, have poor credit. These people still need a way to get to work, to get around town. Their vehicles – they age. They get old. They need to be replaced. And thus, you’ve got this continuous stream of subprime borrowers just looking for a way to get into a car.

GLINTON: Gutierrez says subprime auto lending boomed before the financial crisis, then plummeted with the financial collapse and is now beginning to get back to normal. He says the industry isn’t taking great risks, but some borrowers will be hurt.

GUTIERREZ: It’s devastating at a personal level when you can’t make those payments. You lose your car. You can’t go to work. You can’t pay the bills. But in terms of it being a systemic risk to the entire auto industry or the economy as a whole, it just doesn’t carry the same sort of weight and magnitude as the mortgage industry did, especially the way it was structured back in 2008.

GLINTON: Gutierrez says buyers need to shop around – go directly to the banks, credit unions before you go to the dealership. And if you’re in the car market, you always have options, even if your credit has taken a hit. Sonari Glinton, NPR News.

(SOUNDBITE OF KORESMA’S, “THE THEORY”)

Copyright 2017 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR s programming is the audio record.


Auto Industry Benefits For Now From Subprime Loans: NPR, subprime auto lenders.#Subprime #auto #lenders


Auto Industry Benefits For Now From Subprime Loans

Subprime auto lenders

A factor in the auto industry’s record sales the past 2 years has been the return of loans to borrowers with less than perfect credit. This has led some to worry about a bubble in subprime auto loans.

RACHEL MARTIN, HOST:

Subprime lending is back. We’re not talking about homes this time. Automakers and banks have been extending more credit to those with less than perfect credit scores, and that has some worried about a subprime car bubble. Here’s NPR’s Sonari Glinton.

SONARI GLINTON, BYLINE: As much as I love late-night talk shows, I know that as a reporter, whenever a late-night comedian sets his or her sights on my beat – cars and the economy – I’m going to have a lot of explaining to do. Here’s John Oliver talking about car loans on HBO’s “Last Week Tonight.” Remember, it’s HBO, so there will be bleeps.

(SOUNDBITE OF ARCHIVED RECORDING)

JOHN OLIVER: And this feeding frenzy over subprime customers now includes big lenders, like Santander and GM Financial. They have both expanded their subprime auto financing. And you might be wondering, why the [expletive] is everyone in such a hurry to lend money to people with bad credit? I mean, sure.

GLINTON: To help answer Mr. Oliver’s question, we turn to.

LACEY PLACHE: OK, hi. I’m Lacey Plache, chief economist at edmunds.com.

GLINTON: Chief economist – is that a promotion?

PLACHE: No, I’ve always been the chief economist.

GLINTON: Economist, not comedian, Plache says. The reason why the industry is looking to sell cars to people with less than stellar credit is, well, because jobs.

PLACHE: There are definite benefits to having access to credit, especially for an automobile because that really gives people a lot more options in terms of work.

GLINTON: For many millions of Americans, the only way to get to work is to drive yourself there. Plache says during the economic collapse, access to credit dried up, and that hurt people with poor credit scores. Poor credit means below 650. Now, you could easily fall into that category if you miss a few credit card payments. As the banks and the car companies extend credit to a wider range of people, they’re going to take on more risk.

PLACHE: You are going to see higher delinquency rates, higher defaults than you did during the days where the auto lenders were really focusing the majority of their efforts on super-prime and prime. And, you know, I think there’s some love of drama, right? Some people like to worry, and, you know, this is something to point to.

GLINTON: Now, comparisons between the credit market for cars and real estate are difficult because the car market is one-tenth as large.

ALEC GUTIERREZ: I wouldn’t say that the sky is falling, but I think it is fair to say that there has been an expansion in subprime lending overall. And that’s true of both new car purchases, used car purchases and leasing.

GLINTON: Alec Gutierrez is senior analyst with Kelley Blue Book. He points out that the risks for lenders are lower for autos than for real estate. And cars are easier to repossess, and that’s one reason consumers often pay their car loan first. It’s also a way for consumers to establish credit.

GUTIERREZ: You still have a lot of people that are rebuilding credit that have gone through foreclosures and, thus, have poor credit. These people still need a way to get to work, to get around town. Their vehicles – they age. They get old. They need to be replaced. And thus, you’ve got this continuous stream of subprime borrowers just looking for a way to get into a car.

GLINTON: Gutierrez says subprime auto lending boomed before the financial crisis, then plummeted with the financial collapse and is now beginning to get back to normal. He says the industry isn’t taking great risks, but some borrowers will be hurt.

GUTIERREZ: It’s devastating at a personal level when you can’t make those payments. You lose your car. You can’t go to work. You can’t pay the bills. But in terms of it being a systemic risk to the entire auto industry or the economy as a whole, it just doesn’t carry the same sort of weight and magnitude as the mortgage industry did, especially the way it was structured back in 2008.

GLINTON: Gutierrez says buyers need to shop around – go directly to the banks, credit unions before you go to the dealership. And if you’re in the car market, you always have options, even if your credit has taken a hit. Sonari Glinton, NPR News.

(SOUNDBITE OF KORESMA’S, “THE THEORY”)

Copyright 2017 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR s programming is the audio record.


Lenders hit the brakes on subprime auto loans, subprime auto loans.#Subprime #auto #loans


Lenders hit the brakes on subprime auto loans

Subprime auto loans

Lenders and finance companies have dramatically pulled back the number of loans they issue to borrowers with the poorest credit records.

A new report by Experian shows the number of loans written in the first quarter for borrowers with subprime and deep subprime credit ratings fell to a 10-year low. Collectively, auto-loan originations in those two categories dropped 8.6 percent in the first quarter.

“It does appear the industry is policing itself a little bit more,” said Melinda Zabritski, Experian senior director of financial solutions. “We started to see delinquencies go up, and lenders really seemed to respond especially in Q1 of this year by tightening up a little bit.”

The pullback in loans to those with credit scores under 600 echoes reports from auto dealers about lenders tightening credit standards.

In its monthly dealer survey, UBS found almost a third of the dealers questioned reported tighter credit standards, the highest level measured in the survey since 2009.

Despite the slowdown in new loans to subprime and deep subprime borrowers, those with the poorest credit ratings still owe more than $213 billion on the vehicles they’re driving, just under 20 percent of the $1.08 trillion owed on open auto loans.

Last week, Federal Reserve Governor Lael Brainard warned about the potential for more subprime auto loan defaults.

“Underwriting appears to be quite lax last year in subprime auto lending,” said Brainard. “Delinquencies rates suggest some borrowers are struggling to keep up with payments.”

The latest data from Experian supports Brainard’s point. In the first quarter, the 60-day delinquency rate jumped almost 10 percent, according to Experian. By comparison, the 30-day delinquency rate fell 6 percent.

Still, with fewer than 1 percent of all auto loans being two months delinquent, Zabritski believes warnings about a subprime bubble suddenly popping are overstated.

“I don’t believe we are in a catastrophic state,” she said. “Everyone always talks about lenders having short memories and forgetting from the past, but again we really started to see that pullback and it just really continued into the first quarter.”

Subprime auto loans


The Mortgage Lender Implode-O-Meter – tracking the housing finance breakdown, related to Alt-A and subprime mortgages, lending fraud, predatory lending, housing bubble, mortgage banking, foreclosures, debt, consolidation, lawyers, class-action lawsuits, subprime auto lenders.#Subprime #auto #lenders


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About The Implode-o-Meter

ML-Implode.com was created in late 2006 to raise the alarm about the then-burgeoning implosion of the historically-epic housing and economic bubble. Started as a modest web page created by founder Aaron Krowne, this objective was achieved by, uniquely, tracking the in-progress implosion of independent mortgage lending companies then being ignored by a mainstream media in denial of even the existence of the housing bubble. At that time, you were more likely to hear a partyline of “housing always goes up” and juvenile jeers of “bubbles are for bathtubs” from TV’s talking heads, than of even slight concern about a clearly-overextended, already-frozen housing market.

Operated as a broadly-open community forum, ML-Implode quickly took the lead in news about the mortgage implosion and subprime crisis, as industry professionals flocked to the site to share and find out the latest. The site even became, in part, a whistleblower platform, fighting (and winning) half a dozen lawsuits to defend the right of its contributors to post about corruption and malfeasance in financial companies, and be able to do so confidentially.

Despite its initial incarnation being rendered insolvent by these frivolous legal attacks, ML-Implode continues today in a stripped-down, lean-and-mean embodiment, remaining dedicated to tracking the fallout of the 2007-2008 credit crisis. This mission includes keeping tabs on recession/depressionary conditions, the policy response to the economic downturn and continued financial instability, the Fed and other global central bank interventions (including “ZIRP” and quantitative easing), actions and reforms of the monetary authorities, market manipulation (official and private sector), all global geopolitical conflict with economic roots, the evolution of the banking and monetary system (including dollar-alternative “reserve currencies”, gold, silver, and bitcoin and other “virtual currencies”), the effect of the economic turmoil on society, basic themes of economic fairness and justice, and much more.

We continue to doggedly watch all of these interconnected topic areas, daily picking the most important stories and commentaries, and bringing them together in a convenient and comprehensible form on this site. If you share our concerns, utilize one of the icons at the top of this page to “follow” us by twitter, RSS, email, and more.

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Subprime auto lenders


Auto Industry Benefits For Now From Subprime Loans: NPR, subprime auto loans.#Subprime #auto #loans


Auto Industry Benefits For Now From Subprime Loans

Subprime auto loans

A factor in the auto industry’s record sales the past 2 years has been the return of loans to borrowers with less than perfect credit. This has led some to worry about a bubble in subprime auto loans.

RACHEL MARTIN, HOST:

Subprime lending is back. We’re not talking about homes this time. Automakers and banks have been extending more credit to those with less than perfect credit scores, and that has some worried about a subprime car bubble. Here’s NPR’s Sonari Glinton.

SONARI GLINTON, BYLINE: As much as I love late-night talk shows, I know that as a reporter, whenever a late-night comedian sets his or her sights on my beat – cars and the economy – I’m going to have a lot of explaining to do. Here’s John Oliver talking about car loans on HBO’s “Last Week Tonight.” Remember, it’s HBO, so there will be bleeps.

(SOUNDBITE OF ARCHIVED RECORDING)

JOHN OLIVER: And this feeding frenzy over subprime customers now includes big lenders, like Santander and GM Financial. They have both expanded their subprime auto financing. And you might be wondering, why the [expletive] is everyone in such a hurry to lend money to people with bad credit? I mean, sure.

GLINTON: To help answer Mr. Oliver’s question, we turn to.

LACEY PLACHE: OK, hi. I’m Lacey Plache, chief economist at edmunds.com.

GLINTON: Chief economist – is that a promotion?

PLACHE: No, I’ve always been the chief economist.

GLINTON: Economist, not comedian, Plache says. The reason why the industry is looking to sell cars to people with less than stellar credit is, well, because jobs.

PLACHE: There are definite benefits to having access to credit, especially for an automobile because that really gives people a lot more options in terms of work.

GLINTON: For many millions of Americans, the only way to get to work is to drive yourself there. Plache says during the economic collapse, access to credit dried up, and that hurt people with poor credit scores. Poor credit means below 650. Now, you could easily fall into that category if you miss a few credit card payments. As the banks and the car companies extend credit to a wider range of people, they’re going to take on more risk.

PLACHE: You are going to see higher delinquency rates, higher defaults than you did during the days where the auto lenders were really focusing the majority of their efforts on super-prime and prime. And, you know, I think there’s some love of drama, right? Some people like to worry, and, you know, this is something to point to.

GLINTON: Now, comparisons between the credit market for cars and real estate are difficult because the car market is one-tenth as large.

ALEC GUTIERREZ: I wouldn’t say that the sky is falling, but I think it is fair to say that there has been an expansion in subprime lending overall. And that’s true of both new car purchases, used car purchases and leasing.

GLINTON: Alec Gutierrez is senior analyst with Kelley Blue Book. He points out that the risks for lenders are lower for autos than for real estate. And cars are easier to repossess, and that’s one reason consumers often pay their car loan first. It’s also a way for consumers to establish credit.

GUTIERREZ: You still have a lot of people that are rebuilding credit that have gone through foreclosures and, thus, have poor credit. These people still need a way to get to work, to get around town. Their vehicles – they age. They get old. They need to be replaced. And thus, you’ve got this continuous stream of subprime borrowers just looking for a way to get into a car.

GLINTON: Gutierrez says subprime auto lending boomed before the financial crisis, then plummeted with the financial collapse and is now beginning to get back to normal. He says the industry isn’t taking great risks, but some borrowers will be hurt.

GUTIERREZ: It’s devastating at a personal level when you can’t make those payments. You lose your car. You can’t go to work. You can’t pay the bills. But in terms of it being a systemic risk to the entire auto industry or the economy as a whole, it just doesn’t carry the same sort of weight and magnitude as the mortgage industry did, especially the way it was structured back in 2008.

GLINTON: Gutierrez says buyers need to shop around – go directly to the banks, credit unions before you go to the dealership. And if you’re in the car market, you always have options, even if your credit has taken a hit. Sonari Glinton, NPR News.

(SOUNDBITE OF KORESMA’S, “THE THEORY”)

Copyright 2017 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR s programming is the audio record.


Deep’ Subprime Car Loans Hit Crisis-Era Milestone, subprime auto loans.#Subprime #auto #loans


‘Deep’ Subprime Car Loans Hit Crisis-Era Milestone

Amid all the reflection on the 10-year anniversary of the start of the subprime loan crisis, here s a throwback that investors could probably do without.

There s a section of the auto-loan market — known in industry parlance as deep subprime — where delinquency rates have ticked up to levels last seen in 2007, according to data compiled by credit reporting bureau Equifax.

Performance of recent deep subprime vintages is awful, Equifax said in a slide show on second-quarter credit trends.

Subprime auto loans

Analysts have been warning for years that subprime car loans pose a threat to lenders as delinquency rates have edged higher since reaching a post-recession low in 2012. But it wasn t until last quarter that the least creditworthy borrowers started to show the kinds of late payment profiles that accompanied the start of the financial crisis.

We re seeing an increase in delinquencies across all credit scores, but in the highest credit quality, it s just a basis point or two, Chief Economist Amy Crews Cutts said in an email Tuesday. In deep subprime, the rise is more substantial. What stood out to me was the issuers. Those that have been doing this for a decade or more were showing the better performance, while those that were relative newcomers were in the worse category.

The reason for the increase, she posited, is that lenders have loosened underwriting requirements as more firms tap into a declining market for car loans, not that there are more customers with worsening credit profiles.

It isn t a case of chasing a larger subprime share, Cutts said in an email Tuesday. There s been almost no change in median credit scores. That means they are letting other underwriting characteristics slide, she said, referring to the lenders that issue the bulk of subprime loans — so-called monolines that specialize in one area of the credit market and dealer-finance companies that work specifically with car sellers.

Subprime auto loans

Cutts said Equifax data show that lenders are extending repayment periods and offering longer terms, with many starting to exceed seven years. There may also be loosening by all lenders on factors that I cannot evaluate in my data, she said, citing downpayment requirements, lack of third party validation of income and employment.

That s not to say a repeat of the financial crisis is nigh. There might not even be cause for major concern over the auto loan market, Cutts said. Monolines and dealer-finance lenders accounted for just 4 percent of new originations in the second quarter. And the overall market is shrinking — there were 7.96 million loans in the first half of 2017, down 3.9 percent from a year ago. Just 1.94 million of those were subprime, a 12 percent drop.

Meanwhile, the overall rate of late payments exceeding 60 days on all types of auto loans came in at a still-healthy 0.91 percent, up just eight basis points from last year. The rate on prime loans was at 0.33 percent, an increase of three basis points.

Risk in auto lending is actually very balanced, Cutts said. More than 90 percent of overall auto loans are made by banks, credit unions, and captive auto finance companies, and these entities have become increasingly conservative and discerning in their underwriting.

Still, the rapid rise in deep subprime delinquencies should not go unnoticed, Cutts said.

As soon as lenders (and the investors behind them) get overconfident that they have better models and can make excess profits by disrespecting credit risk, they always get their hats handed to them sooner or later, Cutts said. The mortgage market learned this lesson at the expense of the entire global financial system, and it is playing out now in a micro-level, in the ABS market for subprime auto loans.

Watch Next: Why Subprime Auto Loans May Be the Next Big Short

Subprime auto loans

Subprime auto loans


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subprime auto loans

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Take a moment and fill out our quick application, and after it is completed one of our financing experts will contact you.

Subprime auto loans

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Subprime auto loans

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Subprime auto loans

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Subprime auto loans

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Subprime auto loans