Mexican Media Brands
Defaults on Subprime Car Loans at 22-Year High
U.S. consumers with subprime auto loans are defaulting on payments at the highest rate since 1995, The Detroit News reports, citing Fitch Ratings.
#economics
Share
U.S. consumers with subprime auto loans are defaulting on payments at the highest rate since 1995, The Detroit News reports, citing Fitch Ratings.
The financial ratings service says the delinquency rate for loans to consumers with poor credit ratings rose to 5.8% in March. The rate, measured by payments that are more than 60 days past due, compares with only about 5% in 2008 during the financial crisis.
Financial institutions are responding by cutting back on subprime loans. Such contracts shrank in January by 10% year on year, according to credit reporting service Equifax. Leases to such applicants dropped 14%.
RELATED CONTENT
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data