The Impact of Subprime Auto Loans on New Vehicle Owners

The percentage of new vehicle owners who are financing their auto loan with a payment event, at least $1,000 a month, it's gone from 6% all the way up to 14%. The share was 26.7% higher in December than the year earlier and is largely concentrated among borrowers with low credit scores. Rodney Durham stopped working in 1991, declared bankruptcy and lives on Social Security. Nonetheless, Wells Fargo lent him $15,197 to buy a used Mitsubishi sedan. His application said that he made $35,000 as a technician at Lordeis Hospital in New York.