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Sales of subprime car-loan securities soar
Sales of subprime car-loan securities soar
(Jeff McIntosh For The Globe and Mail)

Long-term car loans a worrying trend for auto, financing industry

There is growing concern among senior executives in the auto and financing industry about long-term loans that some car companies are offering to entice buyers and boost sales.

Auto consumers have been increasingly attracted to long-term loans with low monthly payments. But industry executives are worried that customers will return to showrooms before the seven or eight-year terms of their loans have been completed and find that they owe more on the their vehicle than what it’s worth as a used car.