BANDON, Ore. — CNW Research discovered that both captives and major banks are tapping into pent-up demand of subprime new-vehicle buyers.

Though Art Spinella, of CNW, explained that in comparison to levels prior to the recession, these approvals are still low, they have apparently climbed by almost 61 percent in the opening days of February versus a year ago.

This includes shoppers below 670 FICO.

"The increases are based on a small number a year ago and are nowhere near the subprime heyday," Spinella highlighted.

FICO Scores Fall

The average January FICO score of 697.5 on a new car is the lowest level since January 2006 when it was 694.9, the company further discovered.

"Preliminary data for February shows a continuation of that plunge to 692.5, the lowest since December 2009," Spinella said.

Furthermore, more Hispanics and African-Americans are purchasing new cars. This increased to 23 percent of deliveries in January, compared to only 17 percent in January 2010.

"This marks a steady monthly increase throughout last year and apparently continuing into 2011. February's preliminary numbers show another increase to roughly a quarter of new-car sales," the CNW executive pointed out.

The number of younger buyers under 30 entering the market has also climbed for the last four months and is now at about 18 percent. A year ago this figure was 16 percent.

Spinella put this analysis into some context, highlighting, "All of the data is positive, but fragile. Follow-up surveys of young and minority shoppers give very distinct impression of being tenuous and a reflection of only minor medium-term economic optimism.

"This is unlike a decade ago when those under 30 were absolutely certain their economic future was bright and felt confident they not only could, but would be in better economic financial times well into the future," he continued.