It looks like now might be a good time to finance a car even if you happen to be a borrower with less than perfect credit.
According to the latest National Consumer Credit Trends Report from Equifax, despite the fact that new auto loan originations are hitting record highs, the rates of severe delinquencies are the lowest they’ve been in nearly ten years.“There’s been much concern about the growth of auto lending, particularly in the subprime space, over the past year, yet historically low delinquency rates reveal that the sector continues to perform well,” said Dennis Carlson, Deputy Chief Economist at Equifax. “More consumers are staying current on their payments, which is due to both improved economic conditions and the fact that lenders and dealers are qualifying the right borrowers across the entire credit spectrum. Additionally, the inclusion of non-traditional data, as well as instant verification of income empowers lenders by providing a more accurate picture of a consumer’s financial standing.”
According to its latest report, the April severe delinquency rate (auto loans and leases 60 or more days past due) was 0.81 perc [...]