Car-Mart Customers Return As Deep Subprime Lending Hits Record Low

Deep subprime lending has tightened in the used car industry, and America’s Car-Mart expects to see customer traffic increase. But the level at which the Bentonville-based buy here, pay here used car dealer will see it rise is uncertain, President and CEO Jeff Williams said.

“Many of the larger finance companies have tightened up their credit standards after seeing higher losses, especially those specializing in the deep subprime market,” Williams said. “Eventually this means that some people that previously could obtain financing through third party finance companies may have a harder time obtaining financing now.”

In the third quarter of 2017, deep subprime lending fell to a record low in the used car industry, according to Experian. The percentage of buyers who received a used car loan with deep subprime credit, or a credit score of 500 or less than, declined to 4.64%, from 5.11% in the same period in 2016.    MORE

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