Will Auto Subprime Lending Be The Next Home Loan Crisis?
Florida Minority Community Reinvestment Coalition (FMCRC) Chair Al Pina issued the following statement regarding auto subprime lending to Florida minority families:
TAMPA -
“Let us make it clear that subprime lending for auto loans is necessary just as it was for home loans. But history and data shows us that it is when subprime lending turns into predatory lending is when it has an economic impact on ALL minority families. Minorities purchase more vehicles than homes and this is a fact. We are seeing more and more where new car lenders are keeping minority families in subprime auto loans in spite of the fact that their credit history shows they should qualify for general market auto loan rates. In fact, the FMCRC General Counsel, who is African American, went to a new car dealer and applied for a loan. They attempted to place him in a subprime loan. He being educated on these matters did not accept such terms and found a dealer who did not attempt such practice predatory lending. FMCRC will launch an initiative to combat this practice and allow Florida minority families access to fair auto lending practices. We are inviting key auto manufacturers, NADA and bank auto lenders to join us on a Florida auto diversity committee to find solutions that will put our families into new vehicles without stripping them of excessive discretionary income”
Automotive Lending Leaders in Country:
Institution:Market Share:
GMAC6.4%
JPM Chase5.8%
Toyota5.5%
Wells Fargo5.4%
Honda4.2%
Ford3.4%
Capital One2.7%
Bank of America2.0%
Nissan1.9%
Fifth Third1.7%
FMCRC Mission Statement Our goal is to empower low-income and minority communities by attracting investments for health, education, homeownership, employment, and minority entrepreneurship using a holistic advocacy approach.
