As Stevie Ray Vaughan so accurately puts it in his song “Crossfire,” “Money’s tight; nothing’s free.”. We can see this clearly with car-buying U.S. Citizens. Credit scores are going down, and also the economic downturn continues. Wards Auto accounts that used vehicle sales are outpacing new vehicle sales, and the market for subprime used auto lending options has kept pace, a possible sign that things may be heating up on the lending front in America.
Subprime and non-prime lending options make credit liquidity look better
Automobiles have to sell to make the automotive market get better when credit has to flow, whether it is subprime or not. There is not an in-house financing option target coming from dealers. That does not mean that Americans aren’t naturally leaning towards that kind of lending. Product availability is a problem. It is not where it needs to be. Wards reports Ed Rykulski, auto manager for Al Serra Auto Plaza of Grand Blanc, Mich., saying, “We employ 18 salespersons in the sales center and purchase heavily at the auctions to keep sales at 2009 levels, when we sold 3,212 second-hand units.”
Targeting subprime female buyers with saleswoman
Saleswoman Nancy Koehrman of Taylor Used Automobile Center near Toledo, Ohio, pointed to a growing trend within the current second-hand automobile sales market: employing much more women as salespeople.
”Women customers prefer women to be handling the car selling and also the finance and insurance side, too, particularly if they’ve been classified as subprime,” is what Wards heard Koehrman say.
It is not just women interested in subprime second-hand car lending options. A FICO score of 599 or lower is had by one quarter of U.S. adult consumers, reports Fair, Isacc and Co. Inc. That’s 43 million people!. The market is huge. It is shown here. The the subprime pool is getting more and more people as auto lending options are being declined to those with FICOs from 650-699.
Off-lease stock playing a big role in bolstering inventory
Off-lease cars are where a lot of stock comes for the Serra group. Wards interviewed Rykulski who said this. The Grand Blanc used auto center is a huge of any Ward’s 500 members. These are all dealerships that have had many factors giving them high marks. It is hard to make sure you’ve the inventory you need, besides non-subprime customers, with all the second-hand automobiles being so popular.
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