Date Added: May 2009
Auto finance companies serving the subprime market have therefore become crucial to the economy. They help consumers buy cars and provide them with the opportunity to improve their credit ratings and ultimately purchase other items. For the banks, special financing companies and other lenders, the ability to provide credit to consumers presents several challenges. Capital markets are tight and liquidity is scarce. Consumers are reticent to buy cars and those that want to have much riskier profiles.