Will A Lack Of Sub Prime Buyers Kill The Automotive Recovery?

Most observers say the turmoil in the stock and other markets doesn’t directly affect car sales. What matters, they assert, is consumer confidence. If that holds steady, so will car sales.

But bank confidence matters, too.

So far this year, General Motors says 6.5 percent of its sales have been to subprime borrowers, above the industry’s 5.5 percent, thanks to accommodating financing partners GM Financial, Ally, USB and Wells Fargo.

MorePower - 8/11/2011 11:31:04 PM

+1 Boost

Using the image of a minority women to represent sub-prime buyers...risky!

MorePower - 8/12/2011 10:39:33 PM

+2 Boost

Not political correctness, but statistical correctness. Being that minorities comprise no more than 30- 40% of the U.S. population, statistically, a white person would be a more accurate person receiving a sub-prime loan.

2ndbimmer - 8/13/2011 11:19:58 AM

+1 Boost

Isn't it funny that everyone with bad credit drives a Dodge Charger or Magnum? I work in the auto industry and and every time some one pulls up in one of thse 2 Dodge vehicles, they all ask the same question, "Can I get a car note with a 400 credit score?" WTF!?
So one word, Yes! It will hurt the car market.