The article begins by mentioning that the automotive retail industry’s rate of subprime approvals went down by 4% last month. Regardless of the reason behind the decline, some states around the country are starting to threaten the industry with additional regulations to ensure they are not taking advantage of consumers that have low income levels. Lenders, in fear of impending regulation, are approving fewer consumers for auto loans.
A recent report from the Truecar.com has indicated that the average price which consumers are paying to purchase new cars has risen by over $100 in the last month, primarily due to increased interest in cars with fully-loaded features. Additionally dealer incentives for these cars have decreased, resulting in the need for consumers to put up more of their own money to purchase new and used vehicles.
Read the full article here: