With the US
subprime
mortgage
lending market in crisis, the
car finance market, as reported earlier this month, is showing
key cracks opening up.
Recent research indicates that delinquencies in the
car finance loan market in
America are climbing to their highest level in several years.
Lenders of
car finance are tightening their criteria, with the current
debt outstanding on
car finance loans for new and used
vehicles around $757 billion, according to figures from the
National
Automotive Finance Association.
The NAFA is finding increasing levels of delinquencies on
auto loans, backed up by a recent Lehman Brothers survey.
Experts from the
vehicle finance sector indicate that number of defaults
on loans will only get worse in the next few months. Despite a
monstrous crash remaining unlikely, the impact of the
subprime lending crisis is now stretching into the American
auto loan market.
