BANDON, Ore. — The year-over-year gain for subprime
approvals this month isn't as strong as the jumps were in September or October,
but CNW Research said the climb is still tracking nearly 50 percent higher.

Analysts indicated subprime approvals are 44.6 percent
higher in November as compared to the same month a year ago.

In October, the year-over-year rise came in at 47.8 percent.
September's jump was 62.5 percent, according to CNW.

As loan approval for buyers with less than stellar credit
continues to move higher, CNW president Art Spinella mentioned, "Plastic is
making a comeback as a source for making the down payment on a new vehicle,
even though it's frowned upon by lending institutions."

Through the first 11 months of this year, CNW discovered
more than 7 percent of new-vehicle purchases had a credit card used as part or
all of the down payment. This level compares to the previous high-water mark in
2007 when slightly less than 7 percent of acquisitions were put on a credit
card.

"The real concern, however, is how quickly that debt is paid
off," Spinella said.

In 1995, while only 3.4 percent of acquisitions had a credit
card-based down payment, CNW noted more than 30 percent of that amount was paid
off within 90 days.

But the most recent data shows less than 7 percent is paid
off within 90 days, only a slight improvement versus 2011 (6.4 percent) and 2010
(5.6 percent).


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