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Fed rate relief could make an ‘unaffordable vehicle affordable’

Subprime borrowers made up 15.3% of all vehicle loans in Q4 2025

Aidan Bush

More subprime consumers financed cars in the fourth quarter of 2025 than in Q4 2024 despite rising monthly payments and vehicle prices across both new and used segments. Increased subprime financing may be driven in part by the Federal Reserve’s 2025 interest rate cuts, which have started to bring relief and “should continue to ease […]

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