Consumer Car Buying Advice Blog

Commercial Finance Association sees signs of credit market rebound.

Asset-backed lenders

At Auto Credit Express, we specialize in helping customers with bad credit raise their credit scores and reestablish their car credit with a bad credit car loan. Unfortunately, many of the lenders who work with our nationwide network of car dealers have been operating with smaller pools of available funds due to the problems associated with the current credit crisis.

New lending index released

Today, the Commercial Finance Association (CFA) released its Lending Index for the first quarter of 2009 that showed that 64% of asset-based lenders experienced an increase in new credit commitments over the fourth quarter of last year. On an even more positive note, these credit lines showed a 3.5% increase year-over-year when compared to the first quarter of 2008.

According to the CFA, this may very well point to the potential for a possible market rebound this year.

“Our research could very well signal that the credit markets have turned the corner and some of the liquidity challenges facing lenders and borrowers are beginning to ease,” said Andrej Suskavcevic, CEO, Commercial Finance Association. “At the very least, it signals that businesses have the confidence–and ability–to borrow again. We believe this bodes well for the months ahead.”

The Bottom Line

These positive signs could mean a number of things if you are thinking about buying a car in the near future with a bad credit car loan. Most notably, if you have previously been turned down for this type of loan, you might try reapplying for one in the next couple of months. One other thing to remember: the larger your down payment, the better your chance of getting approved. In the current lending market, equity is king, so make sure your down payment is as much as you can afford. One more thing: be careful about working with a trade-in in which you have no equity or, worse yet, you’re negative in. Lenders, especially subprime lenders, will no longer allow you to roll nearly as much negative equity into a new car loan as they have in the past.

For more information about this and other topics concerning bad credit car loans, visit our web site at www.autocreditexpress.com.

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