It all depends on who you want to quote, flu. You should know that.
See the glass as half empty if you want.
[quote=flu]
“General Motors has the highest auto loan delinquency rate in the industry due to its increasing reliance on subprime customers, a fact some experts fear could lead to a bubble like the one that wrecked the housing market in 2007 and produced the Great Recession of 2008.
At the same time, however, JD Power, one of the auto industry’s most respected forecasters, sees 2013 sales headed to 15.3 million units, the highest level in years.
[/quote]
“One indicator of the status of our economy is the rate at which car owners are able to make payments, or rather, aren’t. The rate at which owners can’t get the check in the mail for their new car is called the delinquency rate, and according to a Los Angeles Times report, it has fallen to an all-time low.”
“Credit report entity TransUnion began tracking this data in 1999, which it calculates as the percentage of borrowers 60 or more days past due. Currently that rate was recorded at 0.33% for the second quarter of 2012 – down from 0.36% in the first quarter and a full 25% lower than last year.”
“We are at such a low delinquency level” said Peter Tureck, automotive vice president for TransUnion’s financial services business wing, “that a slight rise through the end of the year should be expected, though the overall rate will remain relatively low.”
[quote=flu]
While both Chrysler and GM use Ally Financial for their prime loans (which are issued to qualified buyers), GM has its own seperate sub-prime arm, known as GM Financial. In Q1 2012, some 93 percent of GM Financial’s loans were to sub-prime buyers, up from 87 percent in Q4 2010. During that same period, loans to the least qualified buyers – those with FICO scores under 540, were up 79 percent. GM Financial’s delinquent loans also rose by some $200 million in 2012, to $933 million – higher than Ford Toyota and Honda’s combined delinquencies.[/quote]
Spin, spin, spin!…they took GM’s *subprime* arm and compared it to Ford, Toyota, and Honda’s *overall* rate. Real fair reporting!
In actuality, Toyota’s Scion brand had a lower typical FICO score than GM’s Chevrolet (GM’s lowest number):
694 Mitsubishi
704 Suzuki
718 Dodge
721 Kia
723 Scion
726 Nissan
737 Chevrolet
737 Chrysler
737 RAM
741 Fiat
