MEDFORD, Ore. -- Lithia Motors Inc. leaders say financing for "special credit" customers has improved but remains a challenge.
"The No. 1 issue we have with those customers is financing," says CFO Chris Holzshu. "It's amazing how many customers come in and say, 'I want to buy a car, I don't care which one it is, but here's my financial situation' and we don't have lenders who will finance the vehicles."
Holzshu says Lithia secures financing for about half its subprime customers compared with financing more than three-quarters of its other customers.
Experian Automotive's ScorexPlus scale rates a subprime consumer as having a credit score between 550 and 619.