by CULSBlogger
27. September 2011 05:13
Subprime lending is making a comeback. Subprime specialist Exeter Finance Corp. has been purchased by private-equity firm Blackstone Group, and plans to expand the subprime business are in the works.
With the confirmed participation of 2,000 dealerships nationwide, Exeter expects to originate more than $200 million in loans this year. Though this growth is highly ambitious for a company that took more than four years to reach its first $200 million in loans, it is part of a larger comeback for subprime lending.
Experian Automotive reports that the market share for subprime loans in the new vehicle market rose 11.1 percent in the first quarter of 2011, and used vehicles accounted for an additional 3.6 percent in share growth.
That only leaves the question: When it comes to subprime paper, how low will you go to secure loans for your financial institution?
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