With more people being accepted for a bad credit auto loan, buyers are flooding the market!
Seattle, WA (PRWEB) November 08, 2012
More consumers are getting auto loans with bad credit despite economic conditions. For consumers who are in the market for a new or used car; they should be encouraged. There's a new car financing service that's supplying bad credit auto loans on a national level.
During the worst economic downturn in America since the great depression auto lenders were discouraging people with bad credit to apply for auto financing. At one point the average credit score for car loan approval reached 776. A recent study released by Experian Automotive shows that the trends are changing.
With more people being accepted for a bad credit auto loan, buyers are flooding the market, bringing the average credit score required to buy a car down to a "near normal" rate. The average credit rating is now closer to 760 which mirrors very similar conditions in 2008.
According to Melinda Zabritski who is the director of automotive credit at Experian Automotive, "A few years ago, it could have been much more difficult to get an auto loan,".A lot of lenders who specialize in subprime financing might not even have had the funds to lend." But times have changed, she says: "It's a good time to buy a car."
Despite the condition of a persons credit more loans are being approved by auto lenders which means a consumer or student looking for a car loan with bad credit will more easily find one today then ever before. Here's some of the latest trends according to Experian Automotive.
Monthly payments have been lowered an average of 4.6% on new vehicles and 9% on used vehicles. Auto loan terms have been lengthened to lower monthly payments. The average dollar amount loaned to consumers for a new or used vehicle has gone up almost $400. Buyers with bad credit scores are being approved more often. Auto lenders are tending to make more loans in general as the demand for cars has increased significantly.
The upside to the auto lending industry is that as they have increased the amount of loans given they are tending to also receive more consistent payments for those loans then ever before.
With recent changes companies like Complete Auto Loans are finding new ways to extend affordable auto loan rates to various types of credit history.
Sandra Ferguson of Seattle says, "I was finally able to get approved for an auto loan after my bank denied me. What a great company to work with...from the first step to the last, they were there the whole time."
Complete Auto Loans
National Auto Loans Service