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Subprime financing on the rise in new car sales, leasing too

We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
According to an Automotive News report, high-risk lending expanded to 24.8 percent of total loans in Q3, up from 21.9 percent for this time last year. As this level increased, average credit scores of borrowers dropped to 755, down from 763 a year ago. In that time, the average financing amount increased $90 per vehicle, to $25,963.
At 818, Volvo maintains the highest per-owner credit score, while Mitsubishi has the lowest, at 694. The highest rate of borrowers was at Toyota, with 14 percent of the market, followed by Ford with 13.1 percent and Chevrolet at 11.1.

Toyota unintended acceleration lawsuit settled for $16M

Slowly, the many loose threads still dangling after the unintended acceleration issue Toyota faced a few years ago are being resolved. The Orange County District Attorney's office was believed to be the first DA's office to take Toyota to court, its suit alleging that Toyota knew its cars had defects and continued to sell them. The suit sought to "permanently enjoin Toyota from continued unlawful, unfair, deceptive, and fraudulent business practices as it pertains to both consumers and competitors" and asked for $2,500 "for every violation of the Unfair Business Practices Act," plus costs.
That suit has now been settled, Toyota - without admitting fault or wrongdoing - agreeing to pay $16 million to the county. Half of the money will go to the Orange County Gang Reduction Intervention Partnership, another four million dollars to the OC DA's office to investigate economic crime, the remaining four million being used to pay for the case.

Honda Accord barely edges Toyota Prius as California's best-selling car

The Toyota Prius definitely still matters, at least to car buyers in California. The long-lived hybrid was the state's second-bestselling vehicle in 2014 by moving 71,210 units across all of its variants, including the Prius C. The Toyota was the leader there in 2012 and 2013 but lost the sales crown this time – just barely – to the Honda Accord, which sold 71,578 examples. The results in the Golden State illustrate just how different the auto market there is compared to the rest of the country. Prius sales slumped last year nationwide with a drop of 11.5 percent to 207,372 examples sold. However, according to the LA Times, the model's numbers ticked up two percent in California in 2014. Taken by itself, the standard hatchback model would have been the sixth-bestseller there, with 39,036 units purchased. While the Toyota showed modest growth, it wasn't enough to fend off the Accord's 17 percent year-over-year jump in the state, though. According to the Los Angeles Times, the rest of the California top ten included the Honda Civic, Toyota Camry, Corolla, Ford F-Series, CR-V, Nissan Altima, Sentra and Chevrolet Silverado, respectively. That list was quite a departure from the nationwide bestsellers in 2014, which was led by the F-Series, Silverado and Ram pickups. The Camry was the country's foremost car on the list in fourth place overall to beat the Accord in fifth. The Prius didn't break into the ten biggest sellers in the US last year. Related Video: Featured Gallery 2014 Honda Accord V6 Touring: Review View 42 Photos News Source: LA TimesImage Credit: Copyright 2015 Drew Phillips / AOL Green Honda Toyota Car Buying Hatchback Hybrid Sedan sales California hybrid sales toyota prius c