CNW: Regulatory Fears Driving Down Subprime Loan Approvals
Compared to March, April’s subprime loan approval rates fell by nearly 4 percent, according to CNW Research. The firm’s monthly automotive retail summary, however, shows a year-over-year increase in subprime approvals.
BANDON, Ore. — CNW Research’s retail automotive summary for April shows that the monthly subprime loan approvals were down from March by nearly 4 percent, but the year-over-year reading tells a different story.
“The near-4 percent decline could have many possible reasons and be nothing more than a single-month anomaly, but some states are beginning to tighten up or threaten the finance industry with additional regulations if there is even the perception of taking advantage of low-income consumers,” CNW’s Art Spinella stated in the report.
Despite the monthly low for subprime loans, subprime approvals on a year-over-year basis are up nearly 35 percent.
“On another front, leasing continues to take a growing share of overall sales. This month, it is running at a 27.5 percent rate, up 5.7 percent,” the report continues.
With the monthly decline, though, Spinella warns subprime loans are “one thing to watch carefully” going forward.
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