It appears as though a low credit score will no longer prevent Americans from buying or leasing a car as lending restrictions on automobiles has dramatically eased up, allowing more and more Americans, including those with less than perfect credit, to qualify for a car loan.
One of the reasons for the surge in car loans is that investors in the subprime auto market are buying up packaged securities at a quick rate. For whatever reason, these subprime auto loans are seen as less of a credit risk than in other situations. The lingering concern though that I have is what will happen to this entire class of subprime auto loans if the borrowers default, or when the securities get repackaged over and over again a la the mortgage crisis? Time will only tell but what we will see are more and more people who need help after defaulting on a car loan. If you find yourself being sued on a car loan deficiency or having collections action taken against you based on a default on a car loan, you should speak with a debt settlement attorney. The best thing we can do is avoid another situation like what led to the Great Recession by taking control of the debt at an individual level.
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