The continued loosening of credit standards is helping franchised dealers move those high-mileage trade-ins, with CNW predicting that used-vehicle sales in October will top the year-ago period by 8.1 percent.
Subprime approvals are climbing, which could bode well for the rest of the year. But dealers will have to beef up their marketing to get more buyers off the sidelines.
A new study from FICO reveals that bank risk managers expect the auto sector to see the biggest increase in loans made to subprime consumers.
The full-spectrum finance source has reduced its programs from four to three, and transitioned them from structure-based to FICO-based programs.
Consumers were back on the sidelines for the first 15 days of July, according to CNW Research, as car buyers continued to wait for the expected increase in incentives after the summer months.
CarFinance Capital LLC launched its nonprime auto financing system in Texas following a similar program rollout in California in May.
The editor weighs in on the industry’s migration toward a new credit scoring system that’s more understanding and a little bit harsher.
FICO announced that the auto industry is simultaneously migrating to the FICO 8 Auto Score, with most lenders expected to complete the adoption process by May.
An increase in floor traffic and a strong closing ratio indicate that new-vehicle sales in March will improve 11 percent from the year-ago period, according to CNW’s Retail Automotive Summary.
New-vehicle sales are off to a strong start in February because of better floor traffic and closing ratios, as well as a looser credit market, according to CNW’s Retail Automotive Summary.
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