New Auto Lending Study Reveals Similarities To Subprime Mortgage Crisis by MagnifyMoney
Recent reports reinforce that delinquencies are reaching historic highs and losses are climbing. MagnifyMoney wanted to look beyond the numbers and understand how consumers were shopping for auto loans, how lenders verified the creditworthiness of customers and whether the process looked like the subprime mortgage market. Unfortunately there are a lot of similarities. Given the answers to the survey, the recently reported delinquency numbers are not particularly surprising.
MagnifyMoney conducted a national survey of 673 Americans who own automobiles. And they found that:
- 4% of auto loan borrowers let the dealer find them a loan
- 1% of auto loan borrowers never had their income verified when they applied...
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