Consumer Car Buying Advice Blog

More good news for bad credit auto loan buyers as Ally Financial announces a refinancing and a proposed initial public offering

Getting the answers

If you’re planning on applying for a bad credit car loan and you’re curious about the current lending climate for bad credit borrowers you might want to continue reading.

We answer these questions often here at Auto Credit Express, where our twenty year commitment to bad credit buyers includes our web site with a bad credit auto loan application – which we felt was needed after seeing how customers were treated at dealerships that don’t participate in second chance auto loan programs.

The alternative, a tote the note dealer, won’t help reestablish car credit because these dealers rarely notify the credit bureaus about a loan or loan payments. Taking out this kind of loan also increases the chance of repossession.

Refinance

Yesterday Ally Financial Inc., formerly GMAC, announced that it had completed the refinancing of some $15 billion in credit facilities to a consortium of 21 lenders, which will be split evenly with half going to Ally Financial and its Canadian subsidiary and the other half to Ally Bank. It also plans on using the cash earmarked for Ally Financial for retail car loans, leasing and dealer floorplan funding.

“The new facilities are part of our diversified funding strategy and offer additional liquidity to support key areas of the automotive finance business,” said Ally Treasurer Jeffrey Brown. “Continued progress in Ally’s business performance coupled with favorable market conditions enabled us to refinance these key facilities at more favorable terms compared to prior years.”

More favorable rates could also mean that Ally is in a position to begin approving applications from a wider range of buyers, as well.

IPO

In more news this morning, Ally announced that it had filed the paperwork with the SEC for a proposed initial public stock offering. Although details have not yet been released, some of the money generated from this offering could also be used by Ally to fund additional retail car loans while allowing it to offer loans to an even broader range of buyers – such as those looking for a bad credit auto loan.

The Bottom Line

For applicants with bad credit the latest news from Ally indicates that lenders are continuing to increase the number of car loans they are making. And as traditional lenders like Ally compete for the best customers, this creates a situation where credit-challenged will find that they have a better chance at getting approved for a bad credit car loan – which is where we come in.

At Auto Credit Express, we specialize in placing customers with bad credit with dealers that can help them. These dealers are knowledgeable and work with a broad spectrum of lenders to ensure you have your best chance at getting approved for a car loan.

So if you are serious about getting your car credit back on track, you can begin now by filling out our bad credit car loan application.

Tags: ally, ally financial, Bad Credit, bad credit auto loan, bad credit car loan, ipo, refinance

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