A turn in automotive financing [Video]
Posted on Wednesday, September 21, 2016 at 5:41:10 PM
With outstanding credit in the automotive financing market exceeding $1 trillion today, analysts have long since feared that a bubble might be ready to burst. Unfortunately, a new report argued that the financing industry might be in for a bad scene in the near future.
Fitch, a credit rating firm, stated that credit deterioration is gaining steam as subprime lending booms in the automotive category of financing.
"Credit losses and delinquencies for the auto finance industry will likely trend higher as more recent vintages continue to season and recovery values decline from historic highs," Fitch Rating Director Michael Talano explained.
The biggest impact this will have on consumers is a hit to their own credit scores, as well as the availability of loans.
Consumers who have been planning on purchasing a car might want to do so soon while interest rates are still competitive and financing accessibility is in a preferable position. Consider working with a local, community bank to evaluate the options on the table, ensuring the final decision is made on an automotive financing program that will fit unique financial needs and goals.