Mitsubishi Motors Credit of America is trying to be more flexible with consumer loans and began posting profits in April, after facing huge losses in 2003.

A financing offer that included 0 percent interest, no money down and no payments for a year contributed to the loss for Mitsubishi Motors Corp.´s captive finance company, according to Automotive News.

Junji Nishihata, spokesman for Mitsubishi Motors Corp., told the paper the tighter policies caused the percentage of top-rated A-tier customers to rise from 61 percent in 2002 to 82 percent in the first half of 2004. In the same period, he says the number of B- and C-tier customers declined more than 50 percent.

Nishihata also said the finance company is selling high-risk subprime loans to an unnamed third party, and that the company no longer offers balloon and deferred loans.

Mitsubishi´s sales were down 35.8 percent for the first 10 months of the year.

Dottie Diemer, vice president of public relations for Mitsubishi Motors North America, said credit decisions will no longer be determined by an automated program. Employees are now in place so dealers can appeal declined credit applications.