Car buyers with bad-to-mediocre credit have had a rough go of it for the last few years. The lower interest rates of the ZIRP-era coincided with a massive supply shortage that sent prices through the roof, leaving many consumers in a situation where they spent more for a car than they probably should have. Rates have now gone up considerably, leading to higher total car costs, longer terms, and/or higher monthly payments.
This isn’t sustainable, and it seems like more consumers are beginning to opt for refinancing their current loans. This is a potentially good thing for these buyers, though it’s a bit of a warning sign for dealers and car companies. As many Morning Dump readers know, car companies are already in an uncertain environment, and this doesn’t help. What does help is cash, and Nissan just got an injection to help get through the next 12 months. Ongoing disruptions to the new car market are hitting the used car market as wholesale used vehicle prices continue to increase.
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