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 - Starting a New Business Chapter
IBISWorld estimates that barriers to entry into the Subprime Auto Loans industry are relatively low compared with the overall auto financing sector. The high level of fragmentation and competition indicates that the majority of subprime auto lenders serve local and regional markets. Because industry operators are an important part of the US payments system, the Federal Reserve System regulates them. Additionally, firms are subject to laws and regulations relating to consumer protection, discrimination in extending credit, use of credit reports, privacy matters, disclosure of credit terms and correction of billing errors.
Industry operators are required to hold a large number of vehicles or other equipment on their balance sheet to be involved in leasing activities... purchase to read more