According to global
car finance
news, fears are climbing that the American
car finance loan market is struggling to keep up with
car loan
repayments . Many
lenders are having to hire
debt collectors to chase late repayments, further increasing
the pressure on a sagging
auto market.
Evidence came earlier this year when the finance
company GMAC LLC revealed hundreds of millions of pounds worth
of losses. The
vehicle finance unit of the company posted a 77 per cent drop
in net
profits in the last quarter.
GMAC is owned by
General Motors Corp and Cerberus Capital Management, and have
reported hiring many new collectors to cover
debts . According to the American Bankers Association,
delinquencies on indirect auto
loans are soaring, up to a 16-year high.
How the mounting crisis affects the UK
auto finance market remains to be seen.