Used Car News

Tighter credit means fewer delinquencies. Fewer delinquencies allow credit to loosen.

Auto finance is on the upswing of this circle today, according to Melinda Zabritski, director of automotive credit for Experian Automotive.
“Lenders are looking at the market and seeing the competition for finance heat up,” she said.
Major firms, such as AmeriCredit Corp., announced they plan on increasing originations. New firms are popping up all over the country.
There are three main reasons for the increased activity, Zabritski said.
First is delinquencies, which started falling at the start of this year. It was the first decline in consumers falling behind since 2007.
Second is higher wholesale prices. Creditors can repossess a car knowing it will bring a good price at auction.
Finally, finance executives feel more optimistic about the improving economy.
The question now is how much will finance companies increase their business. Zabritski said looser credit standards are guaranteed, but it may be a while before they increase terms and advances.