Facing an economic downturn, captive auto finance companies are taking a vastly different approach in lending practices from the last time the industry faced this hurdle, likely limiting the negative impact that was seen in the sector early in the 1990's. Emerging in the most recent commercials, low-to-no interest subvention loans have emerged as a hot tool among captive finance units of the Big Three offered to super-prime borrowers.

Slowing auto sales and a bleak outlook for the economy in the wake of the events of Sept. 11 present auto manufacturers with a quandary: how to best use financing strategy to move cars off the lot and keep production up as economic fundamentals deteriorate.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.