More auto loans going to subprime buyers

DETROIT — Consumers with less than stellar credit are getting car loans again.

A new report from Experian, a credit rating agency, shows the percentage of loans going to subprime buyers rose 8 percent in the third quarter. That was the first year over year increase since 2007.

Sixty-three percent of all auto loans still went to buyers with prime credit scores of 680 or above. But that's down from higher percentages seen during the recession.

Another sign that the credit market is thawing: People are getting loans for larger amounts and for longer terms.

The average amount financed for new cars rose $2,530, to $25,273, over the third quarter of last year. The lowest-tier buyers also saw a four-month increase in the average term of their loans for used cars.