One of the newest offerings is Ally Balloon Advantage, a retail-installment contract with reduced regular payments in exchange for a larger balloon payment at the end of the loan.
Lenders and their dealer partners prevented at least 1,760 cases of attempted fraud at the application stage during the quarter, helping avoid losses exceeding £23.8 million.
A dealer may end up in the hot seat if unable to show that car shoppers who didn’t end up buying, nonetheless authorized the dealership to access their credit histories.
Much of the greater loan availability is in the subprime market, which is recovering from a bad case of frostbite suffered during the credit freeze of 2008 and 2009.
A trade group says lenders stopped 1,687 attempted frauds at the application stage in the year’s first quarter, saving the industry more than £20 million.