According to the New York Times article there is a new technology in town. Lenders providing car loans install a device that allows them to disable the car remotedly. This reduces the number of loan defaults and so allows them to extend credit to people who were considered too risky in the past.
As a result, the proportion of car loans that are subprime has been increasing, although it has not reached the pre-recessions levels, as you can see on the graph further in the article.
Conclusion: technology can improve the functioning of credit markets.
Of course people who use subprime loans are poor, not financially educated and can be exploited by unscrupulous lenders. But that is a separate problem.
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