Alan Helfman, a car dealer in Houston, served a woman in his showroom last month with a credit score lower than 500 and a desire for a new Dodge Dart for her daily commute. She drove away with a new car. A year ago, with a credit ranking in the bottom eighth percentile, “I would’ve told her don’t even bother coming in,” said Helfman, who owns River Oaks Chrysler Dodge Jeep Ram, where sales rose about 20 percent this year. “But she had a good job, so I told her to bring a phone bill, a light bill, your last couple of paycheck stubs and bring me some down payment.” As the fifth anniversary of the Federal Reserve’s policy of keeping interest rates near zero approaches, the market for subprime borrowing is once again becoming frothy, this time in the car business. As with mortgages in 2006 and 2007, the central bank’s stimulus is making it easier for people with spotty credit to buy cars as yield-starved investors purchase riskier bonds linked to auto loans. While surging light-vehicle sales have been one of the bright spots in the U.S. economy, it’s increasingly being fueled by borrowers with imperfect credit. Such car buyers account for more than 27 percent of loans for new vehicles, the highest proportion since Experian Automotive started tracking the data in 2007. That compares with 25 percent last year and 18 percent in 2009, as lenders pulled back during the recession. Issuance of bonds linked to subprime auto […]

In the midst of the government shutdown and the launch of the Affordable Care Act (aka Obamacare) health exchanges, Medicare’s open enrollment season begins Tuesday October 15. That’s when the nation’s 50 million Medicare beneficiaries who are 65 or older can choose, switch, add or drop their 2014 health and prescription plan coverage. The open enrollment period is scheduled to end December 7. Making the right choices might save you, or your parents, hundreds or thousands of dollars. Why Open Enrollment Is Even More Confusing Now  Trouble is, open enrollment is always a baffling process. Compounded this year by the shutdown and Obamacare, “it’s definitely more confusing than normal,” says Diane Omdahl, founder and president of 65 Incorporated, a firm that provides Medicare advice and information. A recent survey by Medicare prescription drug plan provider Express Scripts found that 86% of Americans who are in Medicare plans or will be Medicare-eligible in the next 12 months were confused about how healthcare reform will affect their Medicare prescription drug coverage. (MORE: 4 Mistakes to Avoid When Enrolling in Medicare) Problems With a Key Website  The shutdown is causing particular havoc for open enrollment because the Medicare Plan Finder, the government’s online guide to help beneficiaries select the right plans for them, “may not be up to date,” according to the site. Under normal circumstances, Omdahl would be encouraging Medicare beneficiaries to start reviewing their options right now. “However, until the shutdown is over and the government is back up to speed, it might be best to postpone making […]