Needless to say, Vaughan understood what it was all about. He said within the song “Crossfire” that “Money’s tight; nothing’s free”. This is true when it comes to the car-buying public of America that is in the economic downturn with falling credit ratings. Wards Auto shows us how much lending is changing in The United States. This is taught when considering the rate of subprime loans has remained the exact same while used automobiles being bought have gone up above new cars. Source of article – Subprime used car loans becoming increasingly popular by Car Deal Expert.

Many more of the non-prime and subprime lending options look good for liquidity for credit

Credit must flow (subprime or otherwise), and autos must sell if the automotive market is going to recuperate. While lenders and dealers with in-house financing choices aren’t targeting the subprime market specifically, the nature of America’s consumer landscape of late has lent itself to such activity. Product availability is a problem. It isn’t where it needs to be. Wards reports Ed Rykulski, automobile manager for Al Serra Auto Plaza of Grand Blanc, Mich., saying, “We employ 18 salespersons in the sales center and purchase seriously at the auctions to keep sales at 2009 levels, when we sold 3,212 used units.”

More subprime female buyers means more saleswomen

More women are being hired as saleswoman claims Nancy Koehrman of Taylor Used Vehicle Center near Toledo, Ohio.

“Women customers prefer women to be handling the car selling and also the finance and insurance side, too, especially if they’ve been classified as subprime,” Koehrman told Wards.

It is not just women interested in subprime second-hand auto lending options. Fair, Isacc and Co. Inc. indicates that more than one quarter of American adult consumers (much more than 43 million people) have FICO scores of 599 or lower. Thus, there’s a huge market to be tapped. The the subprime pool is getting increasingly more individuals as vehicle lending options are being declined to those with FICOs from 650-699.

Off-lease stock building more of an inventory

Rykulski indicated to Wards that the Serra group obtains much of its second-hand stock from off-lease cars. The Grand Blanc second-hand car center is a huge of any Ward’s 500 members. These are all dealerships that have had numerous factors giving them high marks. Unfortunately, as used cars are presently common even with non-subprime customers, it remains difficult to keep enough inventory on hand.

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