Top car companies are enticing customers by approving more number of subprime auto loans. Companies like Chrysler and General Motors have used subprime auto loans to significantly improve their sales in the marketplace. Statistics suggest that about 20 percent and 16 percent of sales for Chrysler and General Motors respectively go to subprime customers having low credit score.

Over the past few years the auto sales in U.S.A have drastically reduced compared to the sales of last decade. The credit crunch due to recession was the main culprit in the loss of sales. Approval of loans for individuals with low credit score had become tight which resulted in fewer customers who actually purchased a car. In such tough conditions automobile companies turned towards various incentives to put a hold to the dropping sales.

Subprime auto loans are the auto loans provided to customers who have lower credit score than the required credit score. This helps car companies to get more customers and drive car sales. That’s the reason Chrysler and General Motors want more relaxation to approve subprime auto loans. Chrysler has already partnered Spanish bank Banco Santander to provide auto loans to customers who don’t qualify for prime loans. This is good news for all the customers having low credit scores.

All these efforts are being done to boost the automobile sales. Gaining more customers will help individual companies like General Motors and Chrysler to generate more profits and it will also help the automobile industry to contribute more to the U.S. economy.

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