Auto demand seen rising for those with good credit

[Jordan]

http://finance.yahoo.com/news/Auto-...tml?x=0&sec=topStories&pos=main&asset=&ccode=

More than 60 percent of the leases expiring next year are held by borrowers in the "super prime" category, meaning they have credit scores of 720 or better, reflecting excellent on-time payment histories, according to TransUnion, a Chicago-based credit reporting agency.

Even better: Another 30 percent of expiring leases are held by borrowers with credit scores that are "near prime" or between 620 and 659 on the FICO Inc. scale of 300-850, or "prime," between 660 and 719.

Morningstar analyst David Whitson said he expects about 11.5 million vehicles to be sold this year. Whitson said he expects 2011 to be even better -- about 13 million cars should get sold or leased.

Lenders are also seeing better payment habits on the part of consumers. In the third quarter, the rate of auto loans with payments late by 60 days or more fell to 0.58 percent, from 0.81 percent a year ago.

 

[Seraphim]

The smart people are deleveraging and paying down debts. My brother and I fall in the super prime borrower category. He bought a car under a year ago on a 5 year finance. 11 months later the car is 70% payed off so far. From here on in he plans on coasting with the monthly payements to use the leverage to invest in our new house.

Deflation smation. Keep deleveraging ladies and gents. You won't be sorry.

 

[Pants]

I am unemployed, I have a very small income with odd jobs (almost not worth counting as income), otherwise my only source of income is Unemployment.. My overall financial situation is so and so. With my wife's paycheck, and my unemployment, we can squeak by. We are paying our bills (barely paying them, but we are).

I am in super prime.. I bet you $100, I could go into the car dealership and drive away in a new car tomorrow with no down payment and qualify for 0.0%. I also bet the financing department won't bother to verify income or look at my debt to income ratio (which is off the charts). They will look at my credit score which is running about 740, sign a few papers, and hand me the keys. You will learn the same careless lending practices that took the economy down a few years ago are still in place.. Nothing has changed.

 

[Seraphim]

Yep. The lending practices have tightened A BIT for the common man, but it is MORE than offset by the fact that GOVT borrowing is off the charts now.

We're worse off then in 2007.

I am unemployed, I have a very small income with odd jobs (almost not worth counting as income), otherwise my only source of income is Unemployment.. My overall financial situation is so and so. With my wife's paycheck, and my unemployment, we can squeak by. We are paying our bills (barely paying them, but we are).

I am in super prime.. I bet you $100, I could go into the car dealership and drive away in a new car tomorrow with no down payment and qualify for 0.0%. I also bet the financing department won't bother to verify income or look at my debt to income ratio (which is off the charts). They will look at my credit score which is running about 740, sign a few papers, and hand me the keys. You will learn the same careless lending practices that took the economy down a few years ago are still in place.. Nothing has changed.