Lenders are increasingly packaging auto loans with terms of 72 months or longer into asset-backed securities deals as more consumers opt to spread out vehicle costs to lower monthly payments. Longer-term loans have appeared for years in ABS deals, but financiers are including a larger portion of 72-month, 84-month and 96-month terms in collateral pools, albeit with safeguards, as more lenders expand their maximum allowed term, analysts told Auto Finance News. Midland, Mich.-based Dow Credit Union started offering 96-month auto loans about 18 months ago, Zach Felty, dealer relations account manager, […]
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