Prime Auto Loans Weaker

Further signs of weakness in the US car loan sector are evident in Moody’s latest auto loan indexes.

Prime auto loan credit performance deteriorated in June 2008 as net loss and delinquency rates increased compared to year-ago levels. Moody’s prime auto loan net loss rate rose to 1.24% in June 2008, an increase of 87% from the level of 0.66% during June 2008, a 18% increase from its year-ago level of 0.46%.

The Manheim Used Vehicle Value Index, an indicator of recovery values on repossessed vehicles, dropped 4% during June 2008 from the year-prior level. Lower prices for used vehicles lead to lower recovery rates on repossessed autos, thus increase loss severities.

Comments

[Paray:]

One of the keys to guarantee a good auto loan rate is to keep yourself open to improving you auto loan. Auto loans are not a marriage. You can switch auto loan partners like a gigolo without having to feel an ounce of guilt. If you feel guilty of cheating on your friendly bank manager or car dealer feel reassured in the fact that banks and finance companies are constantly selling and reselling loans to the highest bidder.
When we suggest to keep yourself open we mean that when purchasing an auto loan try and make sure that there are no penalties for changing auto loan provider. As we mentioned above the loan market is in such a mood that if you have a good credit rating you might have the leverage to demand this.

Paray

Auto Loans

May 13 05:51 AM