On the bankruptcy front, there is good news and bad news as 2010 final statistics have come rolling in. According to the American Bankruptcy Institute, there were 119,406 more filings in 2010 versus 2009. That represented an increase of 8%. That might sound disheartening, but if you look at these figures with a historical perspective, there is a silver lining.
2010 marked the first time in the last three years that the increase in bankruptcies from the previous year wasn’t more than 10%. What can we attribute to this slow-down in bankruptcy filings? Experts say that US consumers have very much tightened up their spending in line with our tough economic climate, and that lessened spending is translating into fewer bankruptcies. This can be seen especially in the realm of business-related filings, which were actually down by nearly 8%.
In any case, the market for post-bankruptcy car financing is still growing, as consumer filings (more than 70% of which are Chapter 7) continue to rise. That means more business for Buy Here Pay Here car dealers.