Personal finance
Burger King slims down for success
The Penguin-Random House merger: 3 takeaways
Dunkin' weathers storm to attract crowds
Inside Wall Street: Bank weathers its own storm
How Sandy will affect shipping business
The whopping US rally that wasn't
Disney acquires Lucasfilm for $4B
Late-inning earnings plays
Gilead's 'son of Viread' passes first test
Auto sales expected to stay strong into 2013
Why Yamana shares are soaring
Archer Daniels Midland is boring and cheap
Stericycle finds treasure in trash
Don't follow Icahn into Netflix
How to trade the US presidential election
David Einhorn is shorting iron ore
What's next for Exxon after Rosneft buy?
Who's right, Main Street or Wall Street?
Hershey shareholders sue for child labor records
China's growth picks up
Europe offsets Johnson Controls' Asia gains
CSX took too heavy a beating
In retail, pessimism doesn't pay
Illumina should reconsider Roche's offer
Why are car loans so easy to get?
If you've had trouble getting approved for a mortgage, a credit card or a personal loan recently because your credit isn't up to par, you aren't alone. We get readers writing to us often in our Forum about their trouble getting access to credit. But one type of loan is open to nonprime consumers -- auto loans.

The most recent Experian-Oliver Wyman Market Intelligence report found that even consumers with the worst Vantage scores -- F-level borrowers -- are getting access to auto loans with an average balance of $15,300. Auto loan originations have been on the rise for the past few years, according to the report.

So what makes these financial products so readily available to consumers with credit scores that aren't among the elite? Alan Ikemura, senior product manager of Experian Decision Sciences, says auto loans have always been a credit product that is more open to subprime borrowers.

"Auto originations have really been a different product than the real-estate type of product or even bank card products," Ikemura says. "It's not a new phenomenon that creditors are lending to lower tiers, except now you're starting to see more of that."

The key to auto loans' wide availability is one simple reality of cars -- they can be repossessed.

"Lenders are, in general, more comfortable about being able to recover their money should there be a problem because they can repossess the vehicle," Ikemura says. "That in itself opens it up to lenders being more comfortable about taking the risk."

Also, Ikemura says, auto loan borrowers are making their car payments a higher priority, which is putting more lenders at ease about the risk.

"Lenders have seen a trend during this recession period of a payment hierarchy," Ikemura says. "Mortgage payments used to be the top of the payment hierarchy. People now need their automobile to get to the job they have; and that's become a priority. We've seen that delinquency go down on the lower tiers. It's moved up the chain."

Для печати
Microsoft will 'die and disappear' in next few years
Whole Foods' freshness starting to wilt
In a war of attrition, Microsoft will beat Apple again
Asbury Automotive sees strong earnings momentum
Student debtors get the runaround
What to keep in your money survival kit
First-date coupon use is on the rise
Groupon offers NYC dinner in the dark
The worst credit cards of 2012
Post-Sandy, banks waive fees
Homeowners spared costly hurricane deductible
7 ways to commit financial suicide
Why are car loans so easy to get?
Best credit cards after bankruptcy
Get more cash for your old clothes
5 fee-free ways to help Sandy victims
After a flood, frugality can be dangerous
After the storm: Rebuild or move?
My unexpected $2,400 vet bill
Best credit cards for holiday shopping
Downside of a higher retirement age
Prepaid cards are not gift cards
Is the economy destroying love?
Financial lesson from a football game
Book Christmas flights before Black Friday
6 ways to earn extra holiday cash
Holiday shopping? Avoid this retail trick
Many holding out for Cyber Monday
SiriusXM drives straight race to $3 a share
Sandy: Beware the bubble in storm stocks
Starbucks: Buy it, own it, love it
4 Canadian value stocks
What's the White House worth?
Stocks are immune to Washington
EMC strengthens RSA business with acquisition
Russia garners another favorable valuation call
Goldman Sachs slashes partnership ranks
Inside Wall Street: Cheers from Bud and Diageo
4 favorites for a housing rebound
Is Baidu's China reign over?
In 2013, Apple, Facebook will fly, Intel will die
Is AOL's turnaround for real?
Stock buyback blitz continues
Anheuser-Busch pushes higher-alcohol beers
Baidu: Searching for growth in China
Twitter vs. Facebook: The war heats up
Would Disney buy Hasbro?
Vending-machine pizza prepares for US debut
Amazon lockers coming to Staples
Are customers becoming less loyal to Apple?
Focus on earnings, not fiscal cliff
Evergreen stocks: 4 favorite dividend ideas
Visit Statistics