Tag Archives: bebdata.com

Subprime Borrowing is HOT in the Car Biz

2013-11-20Today, people are able to buy new cars even with a credit score lower than 500.  A year ago that would have been very difficult to pull off.  Dealerships all over the country are offering deals for high credit risk buyers as long as they have a good job, current utility bills that are in good standing, and some money for a down payment.

 

The market for subprime borrowing is hot and this time the car business is leading the way.  The central bank’s stimulus is making it easier for people with spotty credit to buy cars as investors purchase riskier bonds linked to auto loans.   Below are some interesting facts surrounding subprime lending:

 

  • Subprime car buyers account for more than 27% of loans for new vehicles, compared to 25% last year and 18% in 2009.
  • Issuance of bonds linked to subprime auto loans soared to $17.2 billion this year, more than double the amount sold during the same period in 2010.
  • Some experts believe that vehicle loans are safer because the underlying asset can be more accurately valued, it’s easier to repossess, and people who need a car to get to work make that payment a priority.
  • 58% of loans taken out to purchase Chrysler’s Dodge brand vehicles in October were with loans above the industry average of 4.2% annual percentage rate, according to Edmunds, a researcher that tracks vehicle sales. 
  • Buyers with imperfect credit account for 27% of loans for new vehicles.

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Top 10 BK Courts for CH 7 Filings

We analyzed the last 52 week period to see which BK Courts processed the highest number of Chapter 7 Filings.  The results may surprise you.

2013-11-01

PLEASE NOTE: Our data is based on one per household, minus multiple filers and has been cleansed to postal specifications.

CH 7 Filings & Discharges

Filings and Discharges are down respectively by 10% from the first 42 weeks of 2013 compared to the first 42 weeks of 2012.  Filings declined 10.6% while Discharges declined by 10.5%.

2013-10-23

PLEASE NOTE: Our data is based on one per household, minus multiple filers and has been cleansed to postal specifications.

CH 7 Filings Drop By 9.1%

Chapter 7 Filings dropped by 9.1% from last year.  We are comparing the first 41 weeks of 2012 to the same time period in 2013.  Click here to pull your own stats using our expanded resource center.
2013-10-16

PLEASE NOTE: Our data is based on one per household, minus multiple filers and has been cleansed to postal specifications.

Gov Shutdown & BK Court

2013-10-09Federal courts will continue to hear and decide without interruption even if the US government shuts down on Tuesday morning as a result of congressional gridlock.

Federal courthouses will remain open under the terms of the Anti-Deficiency Act, the federal law that calls for “essential” work to continue in the event that federal funding is frozen.  Most judicial services are considered essential; judges would keep working, legal filings would still be processed and federal defenders would continue to be assigned to indigent defendants.

However, while judges continue to hear cases, the Justice Department said it would ask to postpone appearances in civil and bankruptcy cases as long as it did not compromise the safety of human life or the protection of property under the terms of the Anti-Deficiency Act.

The chief judge in each district will have broad latitude to determine which services and staff members were “essential” and which could be put on hold for the duration of the shutdown.  Each court is going to be different.*

The most recent posted statement from the United States Courts states:

The Judiciary will remain open for business through October 17, 2013. When no funding mechanism was in place on October 1, 2013, the Judiciary projected that fee income and no-year appropriated funds would enable court operations to continue for ten business days. The Judiciary has severely restricted spending during that period so that limited additional funding now exists. Spending rates and fund balances will continue to be monitored closely in hope that adequate funds may be available to allow courts to operate through the end of the work week – October 18.