U.S. car buyers borrow more as rates fall and standards loosen | Reuters

 U.S. car buyers borrow more as rates fall and standards loosen
| Reuters

The Experian report suggests that easier credit contributed to the sales increase, as did discounts by manufacturers and the popularity of big pickup trucks.
Leasing has also increased and accounted for 27.2 percent of all new financing in the quarter, up from 24.4 percent a year ago and 14.2 percent in 2009.
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Lenders made 26.04 percent of their loans on new cars to buyers with subprime credit scores, up from 24.84 percent a year earlier, said Experian, which collects car title and financing information to compile its reports. For loans on used cars, the portion to subprime borrowers rose to 54.95 percent from 54.43 percent.
As the lenders made bigger loans, they also extended credit further beyond the value of the vehicles. The average loan-to-value on new cars rose to 110.6 percent, up by 1.17 percentage points. On used cars it rose to 133.2 percent, up by 2.18 percentage points.
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However, the average loss on loans gone bad jumped to $7,770 in the third quarter from $7,026 a year earlier and repossessions increased sharply, particularly for subprime borrowers.