Longer loan terms and favorable interest rates are tempting consumers into pricier and more feature-laden vehicles, consequently driving average transaction prices up about three percent since 2009, according to a new report by Automotive News.
Errors were found on subprime borrowers credit reports
The auto financing company First Investors Financial Services Group was fined $2.75 million on Wednesday by the Consumer Financial Protection Bureau for reporting incorrect information to credit agencies that affected thousands of customers.
Auto loans in the US increased 10-percent from a year ago
It looks like Americans are feeling more confident about borrowing money again, at least when it comes to their cars. Credit reporting giant Equifax has released its latest National Consumer Credit Trends Report, and the data suggests that auto lending is booming in 2014.
Travelers unable to bring extra weed home ditch it before heading into the airport
Car rental agencies operating at Denver International Airport are reporting tourists with extra pot are frequently handing it off to their employees or stashing their stash in the cars before they return them.
Since the US government shut down early this morning, more than 800,000 federal employees could be furloughed without pay until a deal is reached to start the government back up. To help affected employees cope with the temporary layoffs, Hyundai is expanding its Assurance program to defer all of their auto loan or lease payments until they're called back to work.
The length of car loans in the US keeps on growing as more and more consumers look for ways to save money every month to pay off obligations and necessities. Extremely low interest rates and more durable automobiles have become key factors in driving these new longer-term car loans, which can last anywhere from six to 10 years.
We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
The company promised to lower people's car loan payments, but ran off with the cash
For regular readers of AOL Autos, it might come as a surprise that some people don't know how the whole car loan process works. But a recent move by the FTC to shut down a predatory lender shows there are plenty of scams afoot.
In a move that welcomes former pieces of General Motors back into the fold, GM Financial has reached a deal with Ally Financial, formerly GMAC, to buy a piece of the company's international operations. The $4.2 billion deal is for Ally's Latin America, Europe and China operations.
Automotive News reports Chrysler owes some of its recent sales success to a resurgence of subprime loans. Chrysler has a history of working with customers burdened with questionable finance histories, and lenders have begun to loosen credit restrictions. As a result, 29 out of every 100 auto loans for new Chrysler models went to buyers with a credit score under 680 in the first quarter of this year. Experian Automotive classifies loans tied to that credit score as subprime. What's more, nearly 2
Federal Trade Commission increases enforcement of dealerships that make deceptive promises
The sales pitch goes something like this on the showroom floor: A car salesman makes an enticing promise. "We'll pay off your car loan, no mater how much you owe!" Or "upside down on your current loan? We'll pay off your trade."