RALEIGH, N.C. -

Much of the business at Matthews Motors in Clayton, N.C., is from customers in subprime credit tiers.

Fulfilling the needs of this segment is something of which store owner Steve Matthews understands the importance and opportunity.

“There will always be people with bad credit. We work extra hard to get them in a nice car at a fair price,” Matthews told sister publication Auto Remarketing during an interview in Raleigh, N.C., earlier this week. “They end up being very loyal customers.”

Perhaps that loyalty is helping to drive what appears to be a growing segment of the used-car business.

There was a 25-percent increase in used-vehicle sales to subprime customers during November, according to CNW Research.

There was an especially high number of sales to those with credit scores below 550; in fact, those jumped 27.5 percent, CNW said, and commanded a 22.25-percent share of used sales for the month.

Subprime growth may also be playing a role in the increasingly healthier new-car market, as well.

Kelley Blue Book senior analyst Alec Gutierrez was discussing the strength of the overall new-car sales environment during a sales day conference call on Tuesday, and mentioned several of the key drivers to this healthy new-car market and positive consumer outlook.

While also mentioning low unemployment rates, high consumer confidence, strong stock and real-estate markets, and lower gas prices as key factors, Gutierrez touched on the role of financing, including subprime. 

He said “there’s still a very, very healthy atmosphere for the industry with interest rates still at historic lows — which really speaks to the quality of the finance environment, in which consumers have been able to leverage leasing, longer-term loans, low interest rates.

“And as lenders have opened up their credit standards and started to go back out to subprime borrowers, to some extent, we’re seeing more and more folks gain confidence and get back into the marketplace," Gutierrez went on to say.