Auto lenders and manufacturers are seeing an increase in business as the American economy begins to slowly recover from the damaging recession of 2008. Recent numbers from both types of companies highlight the growing trend of sales and loans to consumers, with many subprime borrowers being able to obtain loans for the first time due to alternative credit
data. The United States is seeing a surge in automobile sales, leading manufacturers to pick up operations after being one of the most negatively impacted industries during the downturn, reports Credit Union Times. A recent study by Auto Nation Inc. found that domestic car and truck sales increased 25 percent in the last year and large manufacturers reported significant increases in their numbers between June 2001 and June 2012, including Chrysler at a growth of 20 percent, Ford at 7 percent and General Motors at a 16 percent rise, states the news source. Requirements for auto loans have bloosened recently, perhaps leading to the recent increase in the economy, according to The Associated Press. Subprime borrowers are able to obtain access to money for cars as many lenders are now looking at an alternative credit score in place of the traditional consumer credit
data. The new type of report looks at various kinds of information about an individual, including employment, rental and criminal history, to help lenders determine creditworthiness.