While other private - equity firms are dialing back their investments
in subprime car loans, Blackstone is investing hundreds of millions more, the Financial Times reports.
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.
not to mention 90 % of GM's [thru is subsidiary Ally Bank] subprime car loans are in default..
The result is that originations
of subprime car loans slumped to $ 39.8 billion in the quarter, down 7 % from the prior quarter and nearly 22 % from just nine months earlier, according to the New York Fed's latest data.
If applying
a subprime car loan, the applicant will have to bring a few additional records.
The reason for extra documents is a moneylender is incurring a high risk when financing
a subprime car loan.
At Jerry Durant Toyota, we realize that seeking out bad credit financing and
subprime car loans can be a frustrating process.
Also, If you decide to buy a car now under subprime financing terms, wait about 6 months after you have financed your vehicle, then refinance
the subprime car loan at more favorable terms.
Prime and
subprime car loans are a good source of income for the banks when the economy is hot, but it can be a source of losses if people are -LSB-...]
Prime and
subprime car loans are a good source of income for the banks when the economy is hot, but it can be a source of losses if people are struggling to repay, especially if they're taking out riskier, long - term loans in the first place.
A growing area of credit mismanagement for younger debtors is the use of high cost debt options like credit cards,
subprime car loans and payday loans.
23 million Americans have
subprime car loans and 6.3 million are behind on their payments.