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Subprime Auto Loans in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Subprime Auto Loans Market Research Report | Advisory & Financial Services | Financial Intermediaries | Jun 2014

Smooth ride: Greater car sales and investor interest will drive industry growth

IBISWorld’s Subprime Auto Loans market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Market Share of Companies
Ally Financial Ally Financial market share
Honda Honda market share
Toyota Toyota market share
Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 09-14
4.5%
Annual Growth 14-19
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Profit
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Employment
34,217
Businesses
832
Industry Analysis & Industry Trends

The Subprime Auto Loans industry is rebounding strongly from effects of the recession, but performance still remains below prerecessionary levels. New car sales, improving consumer finances and continued strong demand growth from subprime borrowers and investors are forecast to spur industry growth over the next five years. However, faster growth will be restrained by rising interest rates that will raise borrowing costs and slow vehicles sales.... purchase to read more

Industry Report - Industry Products Chapter

Subprime loans are those made to consumers who have credit scores below 620. Subprime loans are particularly attractive for banks because they can charge higher interest rates. The average interest rate for a deep subprime loan (i.e. loan to someone with a credit score below 550) on a new car is as high as 13.1%, compared with 3.0% for consumers with the highest credit scores. In 2014, subprime auto loans are expected to account for roughly 19.9% of total open automotive outstanding loans.

Used car loans

Used car loans make up a greater percentage of total auto loans compared to new car loans. In 2014, the average amount financed for a used vehicle is estimated to total $15,029 compared with $14,832 one year ago, according to Experian Automotive... purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Subprime Auto Loans Industry?

This industry includes firms that finance automobile purchases through loans and leases for subprime borrowers, defined in this report as borrowers with a credit score below 620.

Industry Products
New vehicle loansUsed vehicle loans
 
Industry Activities
Subprime automotive lendingSubprime automotive leasing


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