Lenders using other tools, such as longer loan periods, to keep volume going
Updated Dec. 5, 2016
Auto lenders are scaling back loans to subprime borrowers but loosening other terms in a bid to keep loan volume going.
Loans extended to subprime borrowers with a credit score of 501 to 600 on a scale that tops out at 850 fell 4.5% in the third quarter from a year prior, according to data released Monday by Experian Automotive, a unit of credit-reporting firm Experian PLC. For borrowers with even lower scores, lending fell 2.8% over the same period to reach the lowest level since at least 2011. Credit scores for borrowers receiving loans and leases on average increased.
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