Subprime auto lenders exercising caution, according to CNBC.
U.S. auto sales got off to a slow start this year, and though they showed a modest rebound in March, industry analysts are questioning whether 2014 will see a recovery in the American car market this year—especially if lenders begin reining in financing.
That’s a possibility that’s being suggested by a new study by financial tracking firm Moody’s, which found that U.S. subprime auto lenders are “exercising more caution,” especially when it comes to higher-risk customers. Still, the study does not seem to indicate a major slowdown in subprime lending, Moody’s concluded.
The report points to slower growth in non-prime lending by banks and credit unions, as well as so-called “captive finance” firms, which are subsidiaries operated for or by the various automakers.
