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Meet The Preferred "Subprime" Cars: Ranking The Most Popular Car Loans And Leases By FICO Score
With the auto loan subprime bubble large enough for both mainstream media, credit reporting agencies, and the Fed itself, having no choice but to notice, one question has emerged: what is the preferred car model of subprime lessors and lenders? The answer, courtesy of Experian's "State of the Automotive Finance Market Second Quarter 2014" report, is shown below.
First, here is the FICO score sort of new car leases by the 10 most popular leased models:
And, alternatively, the same however not for leases but for loans (yeah, that's GM at the bottom).
So what size GM loan or CR-V lease does a 666 or 726 FICO score, respectively, get you? The answer is shown below:
And, as a bonus, here is the ratio between the average monthly loan and lease payment by vehicle, for those curious who "amortize" their cars the fastest:
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This is a "Duh" post...we can't honestly expect subprime borrowers to be driving Bentleys and Porsches, can we?
We expect bankers from subprime banks to drive them though.
Notice no pick-up trucks? Working men pay cash.
Listen Fuzzel.
I was sure Tyler would "INCLUDE" stats on the Pontiac Aztec.
lol.
I cannot determine if the Aztec or that Toyota van (my dad had one, 4WD to boot) that looked like an elephant looked worse.
Every time I drove that Toyota I felt like I should be taking fares.
pods
Yeah, but Heisenberg WORE that Aztek like a boss.
These CARS are "subprime". Emphasis on the quotes; NOT the credit scores!!!
I'm Responding to all of the comments down below!!!
That's what this article is about. One would think that people with crappy credit buy economy cars, but it's actually people with 700+ scores on average that are buying these economy cars.
Ya don't get high credit scores by being frivolous wit yer Munny!
If the Aztec is good enough for Walter White, it's good enough for any of us.
Buzz is right, I own a 2014 Toyota Tundra pickup truck and paid cash... and I am a working man.
Buy Murican!
Very true, and quite funny at the same time. How idiotic is it to "lease" a new car?
Some folks still do. I haven't bought a brand spanking new one in twenty years. Both my BMWs were lease returns bought with cash. The Corolla was inherited from my in laws.
Ah Ha! So its not just me. ;-) Recently sold my '91 325ix (paid cash in '94 when I lived in Alaska) and still have my 2003 530i - picked up in 2006 - both lease returns. The last "new" car was back in 1979.
Some folks still do. I haven't bought a brand spanking new one in twenty years. Both my BMWs were lease returns bought with cash. The Corolla was inherited from my in laws.
I was with a guy last week who is sales mgr at a caddy dealership--I asked him the pros and cons of leave vs buy-
he told me the big surprise is 75% of Lexus and BWM deliveries are leases. Yes, partly for tax reasons and for ego of driving newer cars, but also the folks want to have nothing to do with fixing these cars out of warranty.
I do not drive that much so I buy and keep. When the car becomes unreliable or unsafe, I trade it in. average age of cars wehn sold in my household is 14 years--that way I can buy new technology but hardly use it.
Exactly what I expected about all those flashy cars around town, thanks for posting!
2 groups, I've noticed, who tend to always lease Mercedes, BMW and Lexus are Real Estate agents and single males in their 20's. Take those off the road and you'd almost never see either car. The remaining ones(the big ones) are driven by old guys who are celebrating the fact that their kids have left home!
My kids have only partly left home......none of them are off dad's checkbook however.
Some leasing numbers from 2011...
http://blog.polk.com/blog/blog-posts-by-tom-libby/dont-believe-everythin...
When I picked up the 530i I was offered an extended bumper to bumper warranty. Took it. More than paid for itself when pads and rotors were replaced in ~10,000 miles.
Did you know you are supposed to take your foot off the brake when you are driving?
Idiots & their money/debt are easily parted.
Stretch those loans out to 96 months on those depreciating assets that are consumable items.
And good job Bernanke & Yellen in artificially pulling about 10 years worth of demand forward, so that their will be another bust cycle soon, with cars & trucks (especially loaded 50k King Ranch F250s) stacked high & deep on dealer lots nationwide.
And BRING BACK ANOTHER CASH FOR GOVERNMENT MOTORS RECALLED CLUNKERS, TOO!
I am the high 6's but I ain't driving no Cruze if you gave it to me.
Aw come on, T-Bill, that's down right un-union and un-patriotic of you! Whatsa' matta', is youse spooked by some measly 50 or 60 recalls? /sarc
Seriously, neither would I. And that applies to any GM (Govt. Motors) product.
Have a 2006 CR-V (negotiated online and paid cash). Best car I ever had. Has 145000 miles on it.
Or any UAW product from any brand. The private and public sector unions have been in lockstep with the government party in sovietizing our formerly great republic.
Really? Do you think the UAW designs the damned things? They just build them and if management says to put a lousy ignition switch in the product that's what they do. If they had a say they would also have been culpable and named in the law suits. To much knee jerk reactions here at ZH now-a-days.
The UAW sits on the board. Perhaps you should have thought before posting?
and the UAW gives LOTS of money to democraps every election.
Therefore, a dollar percentage of EVERY UAW-built car goes right to the likes of Barak Hussein Obola.
Nevermind the book cooking & under the table cash transfers & rentier skims that go on in a government (democrat) controlled company.
If it's UAW-built, I don't even consider it.
On the flip side, if the UAW vanished (I can dream, can't I?), I would never buy foreign.
uaw has no vested interest in quality like employee relationships abroad. unions have fucked themselves for moar bennes without regard for consequences. they are at the facsist center of screwing the average worker. works til it dont. ha...
I knew a plant manager who told me (and he had no reason to lie) that UAW workers would intentionally sabotage both the line and those giant
presses in order to get a break or a shift cancelled, who would write the worst obscenities imaginable under the carpet liner of vehicle trunks (insulting the future owner), smoke weed in the bathrooms, and literally get into prison style shank/knife fights inside the factory.
He went on to tell me there were year long stings by police because
line workers were distributing massive quantities of narcotics inside of the plant, and that Teamster truck drivers were both delivering narcotics to the factories and taking bundled shipments of drugs from the factories (sometimes hidden in passenger vehicles interior compartments).
Gotta love those unions.
@TRuthINSunshine
That makes farting on meringues seem pale in comparison.
Really? Do you think the UAW designs the damned things? They just build them and if management says to put a lousy ignition switch in the product that's what they do. If they had a say they would also have been culpable and named in the law suits. To much knee jerk reactions here at ZH now-a-days.
ya well, these union fuckheads build an inferior product that couldnt be sold for a profit, so the compnay had to get bailed out by the taxpayers. Fuck those guys, I will never buy another chevy as long as i live.
I just bought a 2007 Silverado from the company fleet for $2155 cash. A few cosmetic flaws and 166,000 miles.
I swore I'd never own a GM product, but I justify it as a pre-bailout vehicle.
Saves me putting miles on the S4.
Ha im in the same boat. I drive an 04 Z71 tahoe, i bought it used before the bailout as well, its been paid off for 5 years, has 150k on it, and I will drive it until it drops. the older ones arent bad, but we have a pretty new(post bailout) 3500 at work, and its a POS, been in the shop countless times, and left 4 guys stranded on I95 when it had less than 10k miles on it. I drive one now that i had before all this happened, but i won't buy another one. By the time Im in the market for another one, all the gently used ones new enough for me to want to buy will be post bailout(I refuse to buy new vehicles). Ill stick to toyota or nissan. If they want me to 'buy american' they need to make good products that are worth their sticker price, reliable, and hold their value, until then they can kiss my ass
Thats a killer deal...
And I'm a Ford guy
I'll take 2 of them if any available...
FUCK UAW... They helped get NAFTA passed... Now more mexicans and canadians make (American cars)....
I have no idea what my credit score is, but I happily let others have primacy to buy, load or lease a new car - I only pay cash for a used car.
Listen Malek.
Credit "SCORE" is the tool of the "GREAT" Satan Bankers!
Credit Score is a nice name for Slave Rating. One with a high score gets to work in the house! You gets to be a House N!gga.
If you have that kind of cash, then obviously it's from ill gotten gains. Civil forfeiture for you!
Hail Obama!
Didn't click through to the report yet, but keep in mind it's basically just slicing and dicing the top 10 by sales volume. (Notice they don't seem to include trucks either.) I would be more interested to see the percentage of subprime buyers for all models, would tell me more about what subprime buyers like.
Personally I would expect a disproportionate share of flashy cars to be leased these days ... there are so many people around my town driving Benzes and most of them don't otherwise look like they can afford those cars. Your average person in debt wants people to think s/he's doing fine, it's all about the appearance.
But the large overall number of basic sensible sedans with subprime buyers (civic, corolla, camry, accord, altima) says there are a lot of striver poors who are out there honestly plugging away at the sisyphus task of fighting their debt, and no sooner do they get one debt paid than they have to take on more debt. I know the feeling actually, glad I'm not on that treadmill anymore!
You don't solve your debt problem by buying or leasing a new car. That is ignorant.
More likely that is the price range they "were approved for".
Well, good for the clever ones, that so many sheeple and idiotic debt slaves are out there: it makes used high quality small cars so cheap - and contrary to the misbelieve, we reach every destination, be it rain or snow as dry as the debt slaves in their expensive cars, too! If it's cold outside, we have it comfortably warm inside on our travel, too. And when it's hot, we even can cool it down thanks to aircondition, too. And the best of all (debt slaves don't seem to know): we also don't have to carry our luggage while driving. And simply by sitting we reach our destinations, just like the debt slaves with their much much more expensive cars.
But don't tell them, it's a secret! ;)
Come to Lafayette la and surrounding area f250 loaded out everywhere Ford Raptor - everywhere Beamers , Benz , Infiniti
What I'd like to know is how can they afford the insurance...
The Mrs drives a 2007 Sonata just hitting 68k miles paid cash in spring 08
Was like 22k out the door loaded been a great car ..
Insurance State Farm 51 year old woman no issues on MVR and full coverage was $685 every 6 months
Finally dropped to liability only and cut in half
Point is how the fuck people can afford these new cars trucks with insurance on top
You're getting fucked.
I pay State Farm $458 every 6 months to drive an 2007 Audi S4 (340 HP) with full coverage and a $500 deductible.
You must have a shitty or dishonest agent.
What state
Louisiana is a joke for any insurance
Ohio
They still live at home, or stacked 10 to an apartment.
Nothing frosts my ass more than the unregulated credit reporting agencies.
That these people are able to seize my information, post false information, fail to remove false information, and then re-distribute it to anyone that asks for it- completely pisses me off.
I could care less what "rating" buys what. What we ought to be doing is regulating these bastards, fining them for false information or failing to remove false information, fining them for distributing reports to non- credit issuing companies like car insurance companies- and giving the fine money directly to the people who are damaged.
Fuck credit reporting agencies. I give them a score of "1"- my middle finger.
The big three credit rating agencies are regulated too much. Remember Geithner's actions in response to credit downgrades on US debt? This system lives under the gun of congress and the unaccountable federal bureaucracy. It needs less, not more unfireable masturbators and creepy congresscrittersy and white house crony corruptocrats leering at it.
The core of all this is who owns the information? That is really the root question. I contend it belongs to the individual described in the data, but current practice is it belongs to whomever can compile it. Every single issue would be solved if the individual owned the data describing them, and crater the Orwellian practices of data mining everything about everyone.
Excellent observation and I agree. It is another seizure of information expressly prohibited by the Bill of Rights, #4. Think about that.
The "rims" are usually worth more than the car
Avg IQ of a Chrysler driver popular with EBT/WIC dependents is about 68.
I wonder if they're bundling these as AAA too.
Oh, well, at least you have great fun with the repo. lots of road trips over poorly paved roads, spilled drinks and a suspension more worn out than Paris Hilton.
No Kias or Hyundais? Really?
FORWARD SOVIET!
Who is buying these junk cars anyway?
awesome, sell now before the market is flooded with these repos, corolla a 666 ave credit score, ha...
I am waiting for all of the repos to buy. Good pickens for used cars coming soon to a lot near you!
The used car market is more competetive than the new
Which is why in 2012 I was forced to buy new as used prices were over inflated relative actual value. Fucking cash for clunkers program.
It is, and that's because people are finally waking up. It's called the Stealership for a good reason.
A good used corolla or civic is way cost-effective too, wouldn't mind picking one up in a couple of years. Got 150K on my Mazda and that's our one vehicle in the family other than my 250 cc MC.
They will likely be destroyed before they see resale, however, you may get lucky and get one from someone who want to throw a screw into the lender just before it's repo'ed.
yeah. these might as well be classified as rentals. and we all know "nothing parties like a rental"
Auto loans are roughly 10% the total size of residential mortgages. They also turn over more quickly and reposessing the collateral on the loan (the car) is a lot easier than throwing somebody out of their house.
It may not be a popular viewpoint, but I'm having difficulty seeing subprime auto loans bringing the banking system to it's knees like RE did in 08.
Not nearly as risky from a theoretical financial point of view.
But it is still extremely profitable with no risk to the Financial Institutions as Financial Institutions are entirely backed up by future tax payers...
Selling at a loss to just keep the factories open can continue until raw material suppliers halt shipments because they are not getting paid or the currency they are paid with is no longer accepted world wide.
That is now.
Q: Like Sears?
A: Like Sears.
Or like Saudis yesterday threatening Europe of halting supplies
ekm, don't forget the money made up front on the financing. if buying,negotiate the price up fron with the promise of using their financing. then show up with cash. you will experience one pissed off sales mgr. but they can't back out of the deal, worked for me and man was it funny watching how pissed they got when it became a cash deal, ha...
I did this very thing a couple of years ago. Only I paid off the loan the first month because the dealership applied an additional 1000 dollars off the sticker if I financed thru Hyundai. Lmao. Of course this damages my "credit" rating.
we can play their game and out smart the fuckers....
Sorry to tell you, neither one of you outsmarted them. They still made money on the car. They still get a commission on the loan when you pay it off early. The manager acted mad to convince you that you won. If he was losing money, he simply would have "found a safety issue" with the car you were buying, and offered to renegotiate on another car.
"Outsmarting" them would be not walking into their dealership in the first place.
Interesting point. I would therefore like to see the figures for caravans.
Point o' Odor!!!
The RE didn't bring the banking system to its knees for one simple reason: It was ALWAYS and always will be TOO BIG TOO FAIL.
The runup to the global crisis in financial firms was due to a buncha black-eyed, black-hearted liars, cheaters, and robbers who knew they were promoting No-Doc loans for RE to people who did not qualify even as human beans. They then put those original bad credit risks into bundles and S & P and other supposedly reputable rating agencies stamped them as AAA and from there they were bought by mutual funds, pension plans, and other fiduciaries who covered their eyes, ears, and mouths with their hands, and "earned" 10% per annum. Till they didn't.
RE is fine, it's the shysters, and easy entry criminals who hawked RE to those who couldn't afford it, couldn't pay for it after the first year.
Depends who is driving the car and holds the loan. Recent graduates with 120 k in student loans ( each ) driving the new Lexus across the southern US border on their way to Costa Rica to open a bar. Repo that beeach.
Attractive scenario, there, Citizen.
But we must ever be mindful of the exciting, new "GPS remote shutdown" feature on so many sub-prime cars being sold.
They might get them to Costa, but there they'll sit.
Prolly can't even use the remote fob once they're shut down.
That feature is gonna poop a lot of partys.
I went in for a Fusion and drove out in an Expedition.
Saw you coming.
Nothing like three tons of steel to insure your survivability.
Now if I could just find an Ebola-proof cabin filter.
The life of a Repo Man is always intense.
there's one in every car, you'll see.
http://www.youtube.com/watch?v=2Mxs6A1byIo
But secure employment.
You know what Pontiac stands for?
Poor old N thinks its a Cadillac...
Ford:
Fix Or Repair Daily.
Found On Road Dead.
Fucking Old Rebuilt Dodge!
F O R D
Ford proudly advertises that 9 out of 10 trucks they've sold are still on the road.
What they don't tell us is that only 1 in 10 actually made it home.
If you are going to toss it out there, please go ahead and say nigger.
How about FIAT?
Fix It Again Tony
pods
Taking pride in PC...
I think he meant negro. :)
subprime, it's whats for diner.
Subprime everything.
I just went down to the local Porsche dealership to inquire on a Panamera Turbo. I've been out of work for awhile now, my debt has piled up to substantial numbers. When the dealer asked me how I would pay it, I took out a piece of paper, wrote $10,000 in each corner, and signed it Edward De Quincey. Needless to say, I pick it up in a week.
Man knocks on the door of a mansion and tells the owner he is hungry and would like something to eat. The owner replies, " go around the side and you will a can of paint. Paint the porch and come back and willgive you something to eat."
The man does so and comes back twenty minutes later to the surprise of the owner who says, "you can't possibly be finished."
The hungry man assures him he has, so the owner of the mansion goes round the side to have a look. He freezes in his tracks and screams out, " I said porch. I ddn't say Porsche."
The Panamera is so ugly, you have to wear a bag on your head when driving it.
I'm still in the pre-OBD age. If I can get 10 miles per dollar paid, then it's a bargain.
Why the fuck would you lease a car?
Easier to deal with a full ashtray?
and they are considered the most dependable(hondas, toys, and niss), fucking braindead to lease one these. fucking idiot paranoid bitcheez and faglipped dudes...
because we have superior cash flow
@ C Nelson:
100% business write-off for one
The Camry will drop off the list. The 2015 model is extremely fugly.
In HS I had an old F100 bought with lawn cutting money that my Dad and I kept running until graduation and the chicks loved the bench seat. In my early 20s I rebuilt a 68 pickup, drove it through college and sold it for a profit. WTF is going on?
Dp
flounder:
You think the average person can work on a vehicle? Most can't figure out how to fuel it.
Become skilled, become educated. It's amazing what you can do. Of course, it might take away from their Facebook time.
Numbers seem high, at least for American cars. They are advertising the Cruze here for $99 a month as a lease.
Here in The D a Cadillac ATS can be had for -
*Lease for $269/Month, 36 months 10,000 miles per year. SIGN AND DRIVE. Must have GMS and Lease Loyal. Plus tax, title and plate. No security deposit. Offer ends 10/31/2014
Notice the top three cars are poor man's "Bugout" cars.
I applaud the effort, but nothing really beats an easy to work on old pickup with a cheap shell over the bed.
Of course no one now knows how to work on even simple cars..
I will keep buying used for cash with my 612 FICO
I've got a score of 840 and just bought a vehicle.....2001 Toyota Tundra.... $8,000....paid cash.
Only 88,000 miles on that sucker!
Lol im at 780 looking to buy a 1980s Porsche cash ^^ . . . for fun/beater/work/play car so I dont screw up my VW, credit score is meaningless, credit score only exists to make it harder for minorities to progress.
The higher your credit score, the better debt slave you are.
That's not true. I have zero debt, own three houses free and clear, haven't had a car loan since the early 80's, never paid a penny of credit card interest. Yet my FICO score is 806, I do have access to credit that I don't use such as a 250k HELOC that I've only accessed short term to facilitate a couple of purchases.
Had a 2003 Tundra. Held up well when I rolled it. Prior to that it was bulletproof. Had about he same miles as yours and I felt like it was good for another ten years anyway.
When it starts popping P1400 series codes (air pump) it's around $1800+ for the dealer fix. Or, eBay delete kit for $150 and an easy hour to install. Our '05 Sequoia already did this.
Frugal is smart. My '91 1500 4x4 was my last new vehicle. Sold it in '96 when the paint started falling off in sheets and electrical glitches were cropping up. Bad investment. Could have spent all that lost money on hookers and blow.
three toys here, all with 100 plus. just get the code and fix. last fixed 06 avalon / coil pack cyclinder 4-easy as was coded in trouble code. 4 runner-168k, corolla- 163k, avalon 142k. all paid for with min cov...
Those Toyotas are just getting broken in. I still have a 95 Corolla with 230K and the original exhaust system. Even the light bulbs in that series were high quality and only a couple have been replaced. Biggest expense was getting a local shop to replace the timing belt at 180K. All other work required were things I could do myself.
The airbags in my 96 corolla deployed driving in town last winter. Still drive it.
Paid $2k for it with 116k miles. Tree branch fell on it and totaled it a couple years later. Got a check from insurance for $1,100. Now has 218k miles. Headed to the scrap yard soon. Runs okay, but suspension is shot and it's rusted out pretty bad.
Not bad!
You can do so much more with a Rav 4 or a CRV than you can with a Civic.
Like transporting sheets of plywood, or going rock crawling.
It's amazing how much room a Civic has when the passenger's seat is removed. I've had 6 pieces of Durock and 400 s.f. of wood flooring in a Civic before.
As a young man, I transported a lot of sod in my Ford Sierra.
The SAAB 900 hatchback can haul a huge amount of stuff with the rear seats lowered. One of my favorite cars ever.
Yes! The Merkur XR4Ti....one of my favorite 80s vehicles.
Had a mid 80's Civic Wagon 2WD. With a trailer hitch. Used to go out to forest service land, cut up downed oak, pine and the occasional aspen, haul it back into town, a full trailer and cargo area.
Yeah, I killed it at about 165K and 10 years of use.
I would fit the family garbage can in the ole Geo Metro via the hatchback (rear 2 inch thick seat folded down) and queue up at the gov't ordered waste "transfer station."
those aren;t subprime scores. i don't get it.
true, but zerohedge readers think they know everything, so.... whatever.....
Average.
I knew the Cruze would be in there. A Government Motors piece of shit for government teet-suckers.
A VolksWagen for the teat-suckers.
Very clean '04 Altima SL with 94k miles, $3800 cash. It's actually a pretty nice ride, no CTS but whattaya want for chump change? Fuck a loan and never did understand leasing. We'll drive it til the wheels fall off or run across something else that interests us and sell it.
Cheap Corollas and Civics coming your way.
I thought for sure that the jet black Chrysler 300 sporting around town on 22 inchers and blasting out hiphop at max volume would be the 'pimp my ride" ofchoice with the subprime crowd.
I'm pretty sure those young lads aren't buying on credit.
http://www.youtube.com/watch?v=fdN40tOtEKs
Sub titles would have helped. I couldn't understand one word.
All the hoodrats around here are driving Dodges. Just last week my boss and I noticed the lot at the section 8 complex had several of them all shinny and new. Not on the list. Hummm?
da poleece be patrollin' in dem too. whatchu buy with dat free monies!
They like sparkly things.
"I likes folks to see me."
Buy ing a new car is like buying rotting apple.
I think my next one, when my Civic hits 250,000 miles, will be a Nissan Versa. The one with crank windows that you can drive off the lot for $13,000. I might do a 12-month loan on 1/3 of the cost. Or, I might pay cash for it, I don't know, yet. My FICO score is okay (768).
Those FICO scores are NOT subprime... is this a joke? Lenders used to make home loans with NO qualification or income or asset verification to schlubs with FICO's of 525. BTW, that FICO is about what yours would be right after a BK. Anything over 680 was GOLDEN.