Does your credit union get involved in subprime auto loans? If your credit union is like mine sometimes you are forced to. Its difficult to deny that low scored long term member that always had an excellent history with you. Dealerships have served that client for years and most have special “Special Fi” departments. According to Experian 36%, up form 33% in the third quarter, of auto finances in the end of 2009 were subprime.

The hardest part of approving any subprime loan is risk of default. Experian’s research shows that the 30 day delinquency rate was up only 1% from a year ago.