BANDON, Ore. — Subprime new-loan approvals have now shown four months of increases, according to CNW Research.

For October, 7.6 percent of subprime loan applications were approved, up from 6.9 percent in September and 5.7 percent in October 2009.

"While still only a small percentage compared to January 2008 and before, the number of subprime new-car loan approvals marked its fourth monthly increase," explained Art Spinella, of CNW.

"To show just how contracted subprime is, look at January 2008 when 27 percent of subprime new-car loans were approved," he highlighted.

He went on to indicate that there has been some "major movement" for all approval rates since January 2006.

"For dealers, getting financing for poor-credit shoppers was relatively easy in 2006, with upwards of 45 percent cleared for an auto loan," Spinella said. "The best month in 2008 was January at 27 percent, and nothing has topped October's 7.6 percent this year.

"Will 2006 return? Clearly not anytime in the near future, and it's a good bet a more judicious approval rate, especially for subprime, will keep sales in the sub-15 million unit range for at least a few more years," he continued. 

CNW offered a breakdown of approvals:

January 2010

Prime (680): 69.44%

Near-Prime (620-679): 53.17%

Subprime (below 619): 5.27%

 

February

Prime: 69.82%

Near-Prime: 55.53%

Subprime: 5.13%

 

March

Prime: 72.61%

Near-Prime: 58.82%

Subprime: 5.19%

 

April

Prime: 78.13%

Near-Prime: 59.73%

Subprime: 5.26%

 

May

Prime: 79.21%

Near-Prime: 59.84%

Subprime: 5.31%

 

June

Prime: 79.13%

Near-Prime: 60.24%

Subprime: 5.27%

 

July

Prime: 82.69%

Near-Prime: 60.72%

Subprime: 5.34%

 

August

Prime: 82.31%

Near-Prime: 62.33%

Subprime: 6.43%

 

September

Prime: 83.74%

Near-Prime: 64.19%

Subprime: 6.92%

 

October

Prime: 83.92%

Near-Prime: 64.71%

Subprime: 7.62%