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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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On a daily basis, ZH has to put up articles that give many ZH readers a piece where they can denigrate their fellow American as worthless, stupid, and dirt and they can regail others with their intellectual superiority, their stacks of gold, ammo, and comments about how smart they are, never knowing that they all ready have stage 4 anal cancer and their daughter and her new boy friend are all ready deciding what to do with all of dad's material goods and wealth after he keels. Did I mention that the new boyfriend is black and a democrat?
Aren't we optimistic.
Besides, dad knows daughter isn't his and is wondering how long before boyfriend discovers she is a he, or dad realizes neither care.
Black and a Democrat? Hard to find one that isn't. Ewwww
One of my best friends is a black Republican. He's also an M.D. They do exist...
The distribution of IQ has fatter tails among the subset of humans having a Y chromosome. It is really fat on the low end, with considerably more of that skew in some, ah. Well let's leave that right there.
I'm not unaware. But they are rare. Thomas Sowell, Armstrong Williams, Walter Williams, Larry Elder, Ken Hamblin, Ken Blackburn, Lt. Gov. Steele (Maryland, former...RNC Chair), there are a few more Republican blacks and some very conservative blacks. Hell, the founder of the TeaParty is black.
I was responding to the race-baiting (any other type) of the DemPerv poster needing to declare their black significant other, like I give a shyt.
You said boyfriend was black and a dem...so your race is what, your gender is what, and your orientation is what? Very relevant questions when a DemPerv is in da house.
i call bullshit. girls who date blacks dont have dads....
LOL
Funny. Sad. Somewhat true.
No. Republicans perfectly fit the mold of the emotionally cripped white male who is emotionally unpliugged from his family. The first guy that comes along and gives her attention . . . poof, she's hooked up.
Disturbing - but I see the same thing
Well not enough folks know that the banksters are the real enemy and the stooges try to divide us. Oh, you are stupid. ;)
Shitboxes one and all.
We Westerners have this strange concept that we can create digits on computers called money and............................. the world wiould scramble to provide goods and services to us
Wrong.
Rest of the World is already reducing or halting raw material supplies to the west.
West has not much to offer right now. We have gone total nanny and still hallucinate that world would love to be enslaved to us so we keep watching NFL and Champtions League.
It doesn't work like that. It never did, it never will.
Back to work and more important, ....................back to warring
crv, rav4, escape? good credit = terrible taste in vehicles i'd say.
best kind of car? one that runs and is paid for
Dunno about that. I have a '98 CR-V, paid for long ago and runs well.
the consumer is going to find out the Repo Man ain't as kind as the mortgage lender come delinquency/default time
Where is the subprime in all that? Maybe I just cant read the chart but I don't see anything beow 640?
[sound of respirator]
Back when Obi-Wan was still corporeal...
[sound of respirator]
and I in my yute
[sound of respirator]
He gave me some advice.
[sound of respirator]
He told me to never buy a used light-saber or a used android
[sound of respirator]
or a lease a DeathStar - they never allow enough jump-cycles before you get penalties.
[sound of respirator]
And avoid clones like the plague.
[sound of respirator]
Prick never warned me about wookies though.
[sound of respirator]
Bought my Tacoma cash. Plunked down $35k and took it home. Apparently this is extremely rare.
Oh well it's already paid for itself. Fuck everyone else.
Only a minority are willing or capable of a full cash payment. I once bought a new Geo Metro (3 cycliner) with a check on a Sunday afternoon for $7,800. The dealer probably thought who'd the hell would write a bad check wanting a Geo? Pretty funny.
I simply cannot fathom $35K for a mode of transportation.
$35K, you must have been in a generous mood.
It is much more fun to drive the scumbag sales "manager" to their knees offering whichever orifice you prefer.
Worthless humans peddling manure - and they know it.
Last car I bought I had to tell the "Sales Manager" to butt out of the negotiations with the salsman or I'd walk!
I noticed the Lamborghini Diablo is not listed, I guess they are usually bought by the six pack and paid cash.
money-lenders = heroin dealers
Even though Leases make perfect sense in many cases, most people have a dogmatic, quasi-religious view on car use: 1. "Thou shall buy the vehicle!" 2. "Thou shall buy a Truck or SUV" -- even if they are Urban Cowboys. Because Ego, Looks and Vanity matter more than the Budget for these faux Outdoorsmen.
"Ownership" means being responsible for Parts & Service when the vehicle is outside of Warranty. With a Lease, you don't spend a dime on maintenance or repairs. If you do, you have the wrong make of car. If you buy, it should be with the intent of driving it "till the wheels fall off", to benefit from cost-averaging over the vehicle's life.
The other HUGE mistake that 90% of car buyers make is that that fool themselves (are allow themselves to be fooled) by the Low Entry Price, rather than comparing the TCO (Total Cost of Ownership) over the lifetime of the car (whatever "lifetime" means to you -- typically 6-10 years). This includes the cost of: Premium Gasoline for Euro-performance cars, cost of parts & labor, cost of tires (Normal or Euro-premium?). E.g. studies in Germany have shown (as I recall from my years in Germany) that BMW parts cost more than Audi or Mercedes. If you want to minimize the TCO, you pick a quality car that's known for Reliability, not its "sexiness" or to impress your buddies/peers.
If I parked my emotions and let Spock pick my car, I'd probably get a Camry Hybrid for myself or the Mrs, a used Corolla for the 17-24 y.o., or lease a Prius at < $200/mo. Unlike your typical US Make (Dodge/Chrysler, Ford, GM), all three models would last for 200k miles. The Camry Hybrid (5th gen battery, which is 2 Gen's ahead of competition) gets you 40 MPG. Nothing to sneeze at -- and no wonder they are so popular. In the case of the Prius and its 50 MPG, there is virtually nothing to service -- if you ask the insiders in the Service Dept. E.g. the damn brakes don't serviced/replaced till 80k miles, and get replaced at 150k miles. Fantastic for pure commuting - even though the style is not to everyone's taste. And if you're going to pick a Japanese car, might as well be a Toyota. Just ask the "folks" in demanding environments (Africa, MENA) or a non-friendly ISIS asshole. It's Toyota all the way for these "people".
Use Excel to create a model to determine which makes more sense for you. Note that in the case of a Lease, you are financing the Depreciation of the vehicle for the 2 or 3 year lease duration. Afterwards, you can buy it -- when you obviously finance only the Residual value. Leasing allows you to determine and to control your Transportation costs to great precision (excluding fuel costs), as you have no "surprises" that hit your pocket book per Murphy's Laws: When you can least afford them. Leasing is also a "No Brainer" if you have your own "business" (LLC), as you can write off ALL the costs as an Operating Expenses. No wonder you see some people leasing their "Porsche Cayenne" or other upscale SUV, as it's the only way they can afford it -- by charging their LLC.
Although it's great to have had that New Car look, smell and feel at least once or twice in your life, your Budget (you have one, right?) is far better off with a 2 or 3 y.o. Used Car that you drive into the ground. Renowned models are best for this (e.g. MB, Toyota, Volvo). If you can't afford such a model, your next best bet is an older version from the same Makers. If you commute only a short distance and live in a mild climate, then a motorcycle, moped or bike are even more affordable options.
Stop. Making. Sense.
Stop Making Sense? Well... Can't seem to face up to the facts... I'm tense tense & nervous, can't relax.
"I got three passports, couple of visas
Don't even know my real name"
"We're being taken for a ride again"
Good comment, GREAT advice..
You have gotten pretty far in well balanced analysis,
now only add a serious comparison between a Prius or other Hybrid, and a good TDI or similar.
I have a 2005 MB E500 4matic and though I love the car it is expensive to fix. My wife has a 2015 Subaru Forester that is fantastic. We just drove it to Florida and aversged 31.2 mpg at 80 mph most of the way. Pretty good for a mid-size SUV.
If you make a graphic to illustrate something, make sure it starts from zero. Else, do not bother with a graphic, just post the values in a table.
In five years, the acceptance of a good benchmark credit score went from 620 to 740. You work harder and harder and they move the goal posts.
From nerdwallet: Mike Anderson (2014 and advertiser disclosure)
So, as you boost your score, your monthly payments will generally decrease at the same rate. Let’s say you want to get some new wheels. To finance your slick new ride, you take out a 60-month fixed-rate auto loan of $15,000. If your score is in the gutter, say a 610, you’d pay $357 a month, according to myFICO.com The guy next to you in the lot, with the Ray Bans on, has a superb score of 800. His score is about 30% better than yours—31.15% better, to be precise—as his monthly payment, at just $277, a 28.88% markdown.-
<630: Bad credit
630-689: Fair (average) credit
690-719: Good credit
720-850: Excellent
Although these four categories are the standard, credit scores are still somewhat fluid, especially since the recession began. Since 2007, scores’ effect on consumers has become more severe, too, according to Paul Oster, the CEO of Better Qualified, LLC, which specializes in business and consumer credit services. “The impact of scores has changed dramatically,” Oster wrote in an e-mail. “Consumer’s credit scores can cost or save them hundreds of dollars a month. The ‘magic number’ has been increasing since the ‘R’ [the recession]. I know that 5 years ago 620 was a good benchmark, then it went to 640, 680, 720, and now 740. The average credit score is around a 685. Remember that scores are fluid and changing all the time.”
http://www.nerdwallet.com/blog/credit-score/credit-score-range-bad-to-excellent/
Do you have nothing better to do?
These are not subprime credit scores. Subprime is a credit score below 640.
This also is the same list as the most popular automobiles. Dumbest story to hit Zero Hedge for a while and that is saying something.
Yes, I agree. Total waste but gets the drones to post about their excellent legendary car purchases.
I'll make my own boast -
1976. I traded a car stereo I had put together with amp [Craig] and speakers for a 1967 Ford Galaxie 500 convertible, 390 two barrel.
Drove that car like I stole it for 3 years. Only maintenance - had to do a brake job in 1978, not only wore out the pads, but wore out the backing plates for the pads, the mechanic was in shock, all four drums were split in half from the part of the shoe that holds the plate for the pad.
He saved them to show me, said he had never seen brake shoes / drums worn to such an extreme. I had him put on used parts to cut the cost. Finally, about a year later, the oil pump went out, only lasted a day after that. Engine go boom with a huge loud scream.
Convertible top still worked btw. Don't remember what the odometer said.
I drive a VW, made in Mexico. I figure I was doing my part trying to keep the illegals at home....
Good one.
They imported Africans to built them. All the mexican workers are up north.
What are you babbling about, an article about subprime car loans shouldn't even mention a FICO score above 700. Where are the Kias and Hundais?
This just illustrates average cars for average people, and I *still* wonder where the Koreans are, they appear to be selling across the board and why not they're pretty good cars and great values by all accounts.
Listen Code.
I always thought that the subprimes went to the USSA Ghetto crowd. You know.... The ones that Obama want's to "HELP OUT".
Free food, free phones, free cars, "FREE SHIT for THE ARMY"!
USSA, #1.
yeah, I'm restoring a 1992 Toyota 4 Runner, can't get a stick with the newer ones. Costs me a lot less than getting a new car loan or lease for borrowing a car.
I leased a C-RV AND a Civic back in May. My FICO score was 784. Not sure what htis says about me.........if anything.
You don't drive much?
If you are broke and in debt the last thing you need is a fucking new car.
Grow up and take your lumps I say, earn your street cred. Who really is impressed with a LEASED MUTHERFUCKING BMW?
I look at the driver and say, that asshat leased that car.
Will I be impressive if I rent a Ferrari? Of course not.
Losers with loser mentality.
You're not impressive in a Ferrari, the Ferrari is impressive! You're still invisible. So I'm with you, unless it's Saturday night and there's a cheerleader convention in town.
I guess you have to know your audience.
Sub prime phones next
They already have that: AT&T Next program, where you pay for the phone 3 or 4 times over the life of the agreement.
I leased my new brand new '96 Camry (4 cyl) because we had two young children (dependability) and my wife didn't drive too many miles (no overage and cheap monthly). When the lease expired we bought it from the dealer. In effect we made payments for 6 years (I think). We drove that car for 249k and it was still getting about 30 mpg highway. We did the same thing on a Highlander and although we paid a little more in the long run it was what we needed to do at that time.
I haven't bought a new car since. Now I just buy Toyota\Lexus, Honda\Acura at 100k miles when they are just getting warmed up. Change the timing belt at 100k, tires, brakes, oil when needed and you will probably do ok.
If you ever watch Top Gear (British version) they have a Toyota truck hanging from the ceiling as tribute. They did everything they could to wreck it (even drove it into the ocean), it just kept running!
Sad to see that even Toyota is getting hit by recalls now though.
With your 96 camry, did you break out the calculator and see what would have been cheaper? I mean if you bought the car from the start vs. what you did. If so, which would have been cheaper?
zactly. timing belt at 100k intervals and clutch every 125k or so. Oil change every 3k miles. Got 311,000 on my 1994 accord - trouble free.
I don't think the American cars will outlive their leases, but that's OK they can roll it over in 4 years with a new car and Eduard Quince.
they should have done a graph by color.... only black people buy purple cars
For everyone else, there's Krylon.
How are these the preferred cars of Subprime borrowers? None of the FICO scores shown are Subprime, and 666 is the only score below Prime. What am I missing?
The slidedeck was interesting, though.
What a bunch of anti American used foreign Junk car driving low life no pride traitors here! I proudly buy New American cars. 2005 Cadillac STX just traded in for a New 2014 Cadillac XTS Twin turbo platinum. Bought a New 2008 GMC 4x4 still have it. Bought a New 2008 Corvette convertible, traded it in on a new 2011 Grand sport with every option corvette convertible, still have that. Love My GM cars and I am proud to support My local Car companies. If You drive a foreign car You suck and should leave My country.
Name one luxury us auto maker besides Cadillac for which you must be 45 or older to have any interest in.
That's easy, Mercedes Benz................LOLOLOL!!!!!!!!!!!!!!!!!!
I drive a 991 TTS and a M5 but Im only 58. US cars are OK and the new Vette might be pretty nice but I like my 991 TTS better.
I have made the promise I will never by a Government Motors product again. This extends to Chrysler products!
All I know is Santander is getting slammed on repos...
Guess they could not resist the "American Consumer".
Pardon me while I enjoy a little schadenfreude.
I know cars and components are made all over the world these days, but did anyone notice that 7 out of 10 of these cars are "foreign" labels (Toyota 4, Honda 2, Nissan 1)? Is this what a recovery looks like? Nice work UAW/.gov...
Merika! Fuck Ya!
If you pay cash, who cares what the credit rating agencies say or what they report about you? Paying interest on a loan is for suckers.
2001 honda accord ex 6cyl.....2006 civic.... both wont die just keep running..... the clearcoat sucks on the '01 but i solved that problem with SPRAY PAINT.... all my neighbors drive benz / bimmer / audi / the occassional lambo and recently a masseratti or two, a rare bentley or a rolls, and i give a shit. iv'e had the S Jag, 300SD turbo benz (next best car after the honda), bmw 3 series drop top, vette (another top contender,,,sold to my bro to buy the jag, 6 months later i wished i had the vette back.. the jag blew a main eng seal one day before the warranty expired..lucky me o/w it was a $2500 job), dodge charger 440 magnum with a hurst pistol grip shifter and 411 rear on my return from nam stolen in 6 months by a police chop shop ring in queens, cheby vega, austin healey 3000mk III (totaled it and went through the windshield pas flew about 20 feet over the windshieold the steering wheel hit right above my knees and vectored me thru the windhield vs up and over the windhield), a huge olds toronado, chevy malibu wagon (absolute piece of shit), chrysler lebaron (piece of shit), mini cooper s (great car), izuzu trooper 4wd (another top contender), and just leased a volvo for 2 years to see if i like it..(my wife loves it 4000 miles in one year hardly use it probably will buy it but it has a small trunk) ...all others were cash buys... my fav vehicle is my zx14 ....
Pontiac Aztec was on the worst car ever made list, as I recall. Made it to number 1 on that list! I've always LMAO at Walter White driving that POS. And look what they put that auto through during shooting "Breaking Bad"! Couldn't have picked a better car to trash.
this artical does not tell us what the subprime folks are driving, the lowest credit score indicated is not 'sub prime'.
Many of the new cars hitting the road are really leases which show up as a sale, and many of them may be motivated because an automobile owner faced with a costly repair may be oping for this alternative verses putting money they do not have into their current ride.
This allows someone in a weak financial position, such as those living on disability or student loans, to kick the can down the road while putting themselves into an ego boosting vehicle, one that they cannot in reality afford, or need. I contend that super low artificial interest rates are making much of this possible. If I'm correct, much of the idea of "so called pent up demand" is secondary. More on why vehicle sales are so strong in the article below.
http://brucewilds.blogspot.com/2013/04/auto-sales-spooky-signal.html