ATLANTA - A larger number of drivers are making their auto payments on time according to Equifax and TransUnion. This will have a significant impact on auto dealers looking to secure sub-prime auto financing for customers, according to Global Lending Services.
TransUnion has reported the number of drivers late on their car payments have dropped by 25 percent comparing data from the second quarter (0.33 percent) with the same time a year ago (0.44 percent), according to Global Lending Service. This impacts dealers significantly as this will increase the number of customers to whom they can offer financing, which in turn will increase the number of vehicles they sell.
In addition, Equifax and TransUnion believe more drivers are placing a higher value on making car payments compared with mortgages and credit card bills.
“Economic growth is beginning to take hold now that auto lenders are more willing to offer sub-prime loans to car shoppers,” said Gary Lorenz, CEO of Global Lending Services. “An increasing number of car dealers are working with our team to secure financing products that help generate dealer business growth.”
Global Lending Services works with dealers to offer sub-prime auto loan products for customers looking to buy a car with less-than-stellar credit, providing more revenue for dealers and a second-chance for consumers that need it.