Manufacturers' Low Rates Force Banks Into Used Car Lending

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Banks have been pushed toward used-car loans as manufacturers keep offering 0% financing and rebates on new cars, The American Banker said.

Ted Brown, auto finance practice manager of BenchMark Consulting International in Atlanta which surveyed 46 auto lenders for the Consumer Bankers Association, said bankers "have had to go after the used-car market more to maintain their volume levels and yields."

The newspaper said that, for example, used-car loans are making up as much as 75% of the $3.5-billion car loan portfolio of National City Corp.

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