Subprime Car Loan Rates Higher than Pre-Recession Levels
It may be hard to believe, but subprime car loan interest rates are higher today than before the recession. Prior to the economic downturn, approximately 25% of all new car loans were subprime, and today, according to Lacey Plache, Chief Economist for Edmunds.com it’s slightly higher.
Many are asking if the increase in subprime car loans is a sign of unpleasant things to come, but Ms. Plache doesn’t think so. “At first glance, it looks like we didn’t really learn our lessons from the subprime housing bubble,” she says. “But I think it’s too soon to have that fear.”Read More