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Loan growth spurred by lenders' loosening criteria |
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January 20, 2011 |
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In a recent analysis, Experian® found that the share of new vehicle loans to credit-challenged automotive shoppers grew by 12.7 percent in Q3 2010, compared with Q3 2009, as lenders loosened their loan criteria. Other findings show 30–day and 60–day loan delinquencies dropped, and loans at risk of default are down by $6.4 billion.
"Overall, our Q3 analysis shows that there are very positive signs for the automotive lending industry," said Melinda Zabritski, Director of automotive credit for Experian. "With delinquencies down and less money in their portfolios at risk, lenders can be a little less conservative in their lending strategies. Consumers still have the impression that lending is extremely tight, so it will be important for lenders and automotive retailers to educate car shoppers that there are more loans available to a wider group of consumers."
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