Consumer Car Buying Advice Blog

Latest report from Experian Automotive could have negative implications for bad credit car loan shoppers

Market trends

Here at Auto Credit Express we take note that in its quarterly State of the Auto Finance Market Webinar, Experian Automotive (a division of the Experian credit bureau) noted that year over year automotive loan delinquencies that are 60 days past due rose by 21.7 %, while 30 day delinquencies were also up by 14.6 percent.

So why should bad credit car loan buyers be concerned about this news?

The economy

Although the August University of Michigan Survey of Consumers reports that the “economic recovery is likely to have already started,” the rise in unemployment, although slowing, continues. This, along with other factors, has had an effect on automotive finance.

“Challenging economic times continue to take a toll on the automotive finance world,” said Scott Waldron, president of Experian Automotive. “As the recession continued to drag on during the second quarter, the rate of delinquency rose much faster from the first to second quarter than it did the previous year. This caused lenders to tighten criteria and push some consumers out of the new vehicle market.”

According to Experian Automotive, this also pushed more vehicle shoppers into used vehicle financing and brought more business to independent used car dealers.

Bad credit car loans

Because the auto loan market hasn’t perceptibly improved over the past year, lenders are continuing with tight credit criteria and many have exited the lending market entirely. subprime auto lenders, in particular, are reducing the number of loans that they make as well as cutting back on the number of dealers that they serve. For those car dealers that didn’t focus on bad credit lenders but only used these lenders occasionally in the past, many of them may no longer even have a subprime finance department.

What this means for bad credit customers

Because the lending landscape has changed so radically in the past year and a half, it’s difficult to determine how many car dealers are still involved with bad credit car loans. Even if a dealer is listed in the yellow pages as a bad credit dealer, that may not be the case now.

Finding a dealer the easy way

Here at Auto Credit Express, we specialize in helping people with bad credit get a car loan. When you apply for a car loan using our secure application at www.autocreditexpress.com, we review your application and forward it to the closest affiliated dealer.

These dealers specialize in bad credit car loan customers. To help you further, our web site also has calculators and a resource page to answer any questions that you might have. For those harder to answer questions, we have knowledgeable customer service representatives available during business hours at the toll free number listed at the bottom of every web page.

Remember, you can do this from the comfort and security of your home. So try us out. Here at Auto Credit Express, we’re serious about getting you back “on the road” to better credit.

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