The auto industry and the car dealers are reporting sustained sales growth as the industry rise from the Great Recession. It made June the best June since 2007. The sales growth was spurred by the ready availability of credit for new and used car buyers. Even subprime borrowers with challenged credit can get a loan for car purchases.

Loans to buyers with subprime credit scores, which is generally below 640, have gained significantly since the recession. The loans make up around 11 percent of new car loans, which is twice as much as they were in 2009 at the peak of the recession.

The availability of financing has resulted to the better than estimated sales of the auto industry in the first half of 2013. Sales was projected to reach around 16 million units for the year, which is up from the around 10 million new vehicles sold in 2009. The industry got a record in 2007 with more than 17 million new cars sold.

Independent lenders are approving more subprime loans. According to President Mark Kaczynski of Nissan Motor Acceptance Corp, subprime were 13 percent of deals before the recession. Credit availability had cut the level in half during the financial crisis. At present, the industry has not reached the levels before the recession but it is getting there.

Most independent lenders have entered subprime market in the past two or three years. They have handled more of those types of loans than large banks and finance arms. Car dealers have signed more subprime lenders.

More banks are also getting into subprime auto lending. They see it as a way to earn higher yields on their money. They package the loans into securities that are sold in the money markets. Wall Street is seen to be welcoming the development.

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