Getting car loans has become easier. Car loans will help many who have low credit scores and no way out. The credit market getting easier will make cars sell faster. Auto lenders are happy with more cars being sold. Also, more cars being sold mean a recovering economy. Resource for this article – Car loans getting easier for individuals with low credit scores by Car Deal Expert.
Car loans for a bad credit score more accessible
Signs of life let auto lenders expand their products. The Associated Press tells us that car buyers with a bad credit score can get auto car loans nevertheless. Usually, those with scores below 620 only get approved 60 percent of the time. 5 percent was the going rate for the last year. It has gotten up to 9 percent though. Car buyers with poor credit have to pay more interest and have bigger down payments but being able to get a car at all makes them a bigger part of the market.
Car loans dropping interest rates
The Associated Press reports that those with great credit within the first quarter of 2010 made up 17 percent of autoloans. Instead of getting new cars with loans, 53 percent got used cars. Because interest rates are dropping, this rate might increase. The average rate of interest for a four-year car loan this month is 6.3 percent, down from 7.2 percent a year ago, as outlined by Bankrate.com.
All buyers welcomed by auto makers needing to sell
Americans have seen their credit fall drastically. 43 million individuals are shown by FICO Inc. to have credit scores below 599. The economy was really hurt during the recession because of the auto lending industry which had higher default with subprime lending. But the Wall Street Journal reports that General Motors in specific is looking for solutions to expand loans to riskier buyers. Most consumers are those that have lower credit scores with is why GM wants them now.
Subprime auto lending doing great
AmeriCredit Corp made a deal with GM to help people get loans with poor credit. Under this arrangement GM augments the loans with cash incentives so it can offer more competitive rates. For subprime auto lending, Americredit Corp. is one of the biggest companies. The business expanded the number of auto dealers it works with to more than 8,000 within the first quarter of this year, up from 4,500 a year ago.
Associated Press
google.com/hostednews/ap/article/ALeqM5gCH7uRdNTEXaUCoNUPeukZZi3qDwD9H22DQ00
Bankrate.com
bankrate.com/
Wall Street Journal
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