If the snow and ice storm has left you in need of a new car, experts recommend you do your homework when securing a loan to purchase a new ride. NewsRadio WGNS' Stephanie Carson has more...

A recent report from the Center for Responsible Lending highlights the growth of subprime lending in the auto market.

Chris Kukla, the center's senior vice president, explained that several issues are at play; cars are more expensive and wages are stagnant. Plus, he said, dealers are rewarded for issuing loans at inflated interest rates - an undisclosed practice called a dealer markup.

"You're already underwater by 40 percent to half the minute you drive off the lot, but you've also got a depreciating asset," he said. "Most people, they're going to be underwater the entire time that they're in the loan."

Kukla contended that the practices aren't only dangerous to family economic health but in the long run also hurt car dealers as well, because consumers upside-down in long-term loans aren't repeat customers.

The report found the value of subprime loans for cars has grown quite suddenly, and there's been a corresponding uptick in car and truck repossessions. Kukla said consumers may think they have protections, but the industry has been aggressive in averting regulation - especially at the state level.

"This is an area where there has been very little, if any, real consumer protections put in place, when you compare it to any other lending market," he said.

Those against regulations say stricter rules could make it tougher for people with sub-par credit to find auto loans with monthly payments that can work within their budgets.

The report, "Reckless Driving: Implications of Recent Subprime Auto Finance Growth," is online at responsiblelending.org.