1964 Ford Thunderbird on 2040-cars

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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.

Ford Recalls Nearly 700,000 Vehicles

Ford is recalling more than 692,000 Escape small SUVs and C-Max gas-electric hybrids in North America to fix two safety problems. The recalls cover vehicles from the 2013 and 2014 model years. Most of the Escapes have both problems. The first case covers 692,500 Escape and C-Max vehicles. A software glitch can stop the side curtain air bags from inflating in certain types of rollover crashes. The company says it has no reports of crashes or injuries. Dealers will reprogram the air bag control computer for free. About 65,000 of the recalled vehicles are C-Max models, and the rest are Escapes. Roughly 591,000 are in the U.S., with 3,500 more in U.S. territories. About 78,000 are in Canada and another 19,500 are in Mexico, Fordspokeswoman Kelli Felker said in an e-mail. There could be more vehicles affected in other markets, the company said. The affected Escapes were built from Oct. 5, 2011 through Feb. 14, 2014. The C-Max vehicles were built from Jan. 19, 2012, through Feb. 24, 2014. The second case covers about 692,700 Escapes. Exterior door handles can bind and stop the door from latching properly. This could allow doors to open while the SUVs are in motion. Dealers will inspect the handles and reposition them if needed. No crashes or injuries have been reported. About 583,000 are in the U.S. or its territories, with another 89,500 in Canada and 20,000 in Mexico. Ford said in this case, the problem may affect vehicles in other markets. All the North American Escapes were built from Oct. 5, 2011, through April 10, 2014. Recalls Ford escape

Recharge Wrap-up: Tesla considers Model III SUV and wagon, Ford tears Tesla apart

Worries over Brazil's electric grid mean EVs are excluded from green car incentives. As part of a new efficiency program, non-plug-in hybrids will be eligible for a reduction in import duties, while EVs and plug-in hybrids will not. Brazil's government is concerned that the country's grid lacks the capacity to handle the increased load from an influx of EVs. Brazil plans to create a new incentive program - perhaps a more inclusive one - when the current one expires at the end of 2015. Read more at Green Car Reports. Tesla could make SUV and wagon derivatives of the upcoming Model III sedan. Tesla's VP of engineering, Chris Porritt, told Auto Express that to reach as many customers as possible, Tesla would consider all its options. "SUVs, estates - who knows?" says Porritt. He also says that while the company is currently focused on products with a broader appeal, another Roadster or other sports car aren't out of the question in the future. Read more at Auto Express. Ford admits to a Tesla Model S teardown. Ford CEO Mark Fields says that after disassembling, reassembling and driving the model S, his company is "very familiar with that product." He also says the Ford has the capability to build a similarly high-tech, long-range electric car. The questions still remains if Ford has plans for such a vehicle, but Fields says that it fits within Ford's "product philosophy." Read more at Business Insider and at USA Today.