Subprime Auto Loans. These three words are causing quite the stir lately.USA Today just published an article, “Delinquencies rise on riskier auto loans,” featuring research from Fitch Ratings that states delinquencies of at least 60 days for subprime auto loans have risen 13 percent month over month in July and are also 17 percent higher than July of last year. These increases are not small jumps as CNBC noted in a recent article that the total amount of auto loans now exceeds $1 trillion.However, this number is not solely due to individuals with subprime and deep subprime credit. Delinquencies among prime auto loan borrowers have also been on the rise, jumping to 21 percent higher than the previous summer.CNBC noted data from Fitch Ratings for the annualized net loss rate, or the subprime loan bundles that are considered likely to default, climbed to 7.39 percent in July. This percent is up 28 percent from the previous year.The latest numbers show a general increase from all sides, however many feel that this increase is nothing unexpected as lenders have loosened credit standards over the past couple years.The debate on the auto loan market is catching a lot of wind as some sides warn of risky business and potential downfalls while others remain unfazed as Fitch Ratings noted that used vehicle values are remaining strong and unemployment rates held low across the nation. However, Fitch also noted that later in 2016, we could see a decline in the value of used passenger cars which would result in larger loans being taken for a new car to offset the diminished trade-in value.But what does this all mean for you as an auto dealer and lender? It means there’s a mammoth opportunity to set yourself apart from the pack and showcase yourself as a leader in a rough market.How? Be a best-in-class dealership.By best-in-class, it’s not merely about the best product or the latest technology. It’s about customer service. Your teams need to treat customers with respect and help them determine what is best for them. It’s no longer a selling game to convince the customer of their ‘needs.’ It’s about helping your customer make an informed decision by educating them on your inventory, financing options and other valuable features so your customer knows they’ve made the right decision. Plus, you need to do all of this in an effective manner by having the right tools and resources to manage your lot inventory.Don’t let your business falter during tough times. Take control and get ahead.Contact us today for more information on how we can help your business be a best-in-class dealership.