Checking out data from CNW that came out last week -- they've got tons of data going back years and years, it's amazing.
There's one report in particular that caught my eye: "Approval Rates by FICO" - document 1483 for those keeping score at home. Wish I could share it with you, but you have to subscribe to get the insider info. (Maybe Art Spinella will give us some sound bites in the coming weeks.)
What this Excel spreadsheet shows is the absolute destruction of the loan approval rate for the subprime segment -- from a height of 46.29% in August 2006 to the crushing low of 4.16% in December of '08. The numbers are reflective of what we know, which is that lenders voted with their feet when it came to financing a car for anyone with a score below 620.
Fortunately, there's been a slow climb back up since then...all the way to a whopping 8.92% approval rate for car loan applications in the subprime category for September 2011. The rate slid a little during Q3 from some months over 10% in Q2, but that 8.92% for last month is still a 28.9% increase over September 2010.
What does that mean for us, who cater to the consumers who fit that profile?
Lenders are still cautious about lending to anyone who qualifies for special financing. But they're dipping their toes back in the water and finding the temperature more and more to their liking.
My question to you is: what are you doing to take advantage of the lenders who are wholeheartedly getting their feet wet?