JIM HENRY

From easy credit to tight, then back. Already?

Jim Henry is a special correspondent for Automotive News
The business-cycle pendulum swings back and forth, from tight credit to easy credit and back again, right?

Dealers may be chilled to learn that some auto lenders are already warning against making credit too easy.

“Everybody gets cautious: ‘The sky is falling!' Then everything gets better, and we all decide to expand credit,” says Adem Yilmaz, who manages consumer risk for Toyota Financial Services.

“There are always business cycles. You have to be very cautious,” he said this month at a conference in San Francisco.

But let's not overstate the case. Yilmaz worries about consumer risk because that's his job. For now, Toyota Financial isn't putting the brakes on consumer credit.

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