Ford's Darkest Day In 5 Years

[LanternWaste]

14. Approximately one third of all current auto loans are subprime (FICO 550 or lower)

Approximately one third of all current auto loans are subprime (FICO 550 or lower), delinquencies are up 5% over last year. Over six million subprime auto loans in 2015 alone. And though no one values a car at twice its actual worth and then securitizes the loans, the interest rates charged on these loans are very high (often over 20%), and the investors give very low recovery values to the assets. High interest rates can make up for a lot of underwriting sins...