Consumer Car Buying Advice Blog

A recent article about First Investors Financial Services that appeared on the Subprime Auto Finance News website could be good news for bad credit auto loan consumers this year.

Our company

For the past 20 years, Auto Credit Express has focused on consumers with bad credit, helping these customers raise their FICO scores and reestablish their car credit by financing a vehicle with a bad credit car loan through our affiliate dealers.

Along the way, we try to educate our applicants on the loan process, so that they can be better understand the differences between the bad credit auto loan process and that of traditional lenders. When the economy took a downturn, we advised our applicants on how to better prepare for tightening lender standards and, as the economy improves, we will continue to offer the most up-to-date advice for credit challenged consumers.

Latest news

Yesterday, an article on the Subprime Auto Finance News website discussed an interview that the magazine had with the chairman Tommy Moore of First Investors Financial Services, a Houston-based lender involved with subprime automobile finance.

During the interview, Mr. Moore mentioned that, during 2010, First Investors was planning on increasing its dealer base as well as the number of loans it will originate. According to the Subprime Auto Finance News article, First Investors began adding dealers in the fourth quarter of 2009 and also began “making policy changes to increase originations” (meaning new loans to consumers).

But Mr. Moore was also quick to point out that business would probably not return to pre-recession levels: “The auto securitization market will return. Will it go back to where it was? I don’t think so. … But more and more investors are coming back to the marketplace.”

As we see it

The bottom line to the Subprime Auto Finance News interview is that at least one subprime lender is slowly beginning to increase the number of bad credit auto loans that it originates. But at the same time, this process is going to be slow and deliberate and even if the market does recover, it will probably never reach the levels seen two or three years ago.

For credit challenged consumers, this means that, with a given credit score, they will still be paying a higher rate of interest than they might have paid before recession began. And in addition to these higher rates, they may also be looking at shorter loan terms, as well.

At Auto Credit Express, our advice to consumers seeking bad credit car loans hasn’t changed since the recession began:

• Know your credit score and what’s contained in your credit report
• Plan on coming into the loan with at least 10 percent down in cash or trade equity
• Keep the loan term as short as possible
• Buy a compact or midsize vehicle and put off looking at your dream car until after you’ve reestablished your credit.

The basics

As with anything else, the key to a successful bad credit car loan is focusing on the basics. At Auto Credit Express, that means helping people with credit problems get approved for new and used car loans through our network of affiliate dealers. These dealers work with a broad spectrum of bad credit auto loan lenders to get you approved. Since our inception, we have processed over 2,000,000 online bad credit auto loans and our dealers have closed over 1 billion dollars in auto loans.

For more information, please visit www.autocreditexpress.com to see what we can do for you.

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