That is what the latest report from Experian Automotive states as it also shows a growth in approved auto loans for people with bad credit
In the business
If you're considering applying for a bad credit auto loan you'll find that the latest report from Experian Automotive contains some good news.
We should know because at Auto Credit Express we've been involved for last two decades in helping bad credit buyers and for the last ten years we've helped credit-challenged applicants find a dealer that specializes in bad credit auto sales. Our website also explains credit repair and repossession as well as today's topic: the current state of no credit auto loans.
The February 23, 2012 report begins by stating that, "Low interest rates, longer loan terms and growth in subprime help make it a good time for shoppers to buy a car."
It continues with the following:
"The improved automotive lending market is good news for consumers in the market to buy a vehicle," said Melinda Zabritski, director of automotive lending at Experian Automotive. "The confluence of low interest rates, longer loan terms and an increase in loans outside of prime provide a great opportunity for more people to find a vehicle that suits their needs."
"Lenders are clearly on much more solid ground than they were two or three years ago," said Zabritski. "With delinquencies and total
dollar volume at risk down, lenders have been able to adopt more aggressive strategies. This tends to benefit everyone, from lenders to automotive retailers to the end consumer. With more lenders aggressively competing for business, it's a great time for consumers to buy or finance a vehicle."
How this might affect bad credit auto loans
One other thing the report noted was that new car loans to customers with nonprime, subprime and deep subprime credit scores increased 13.8 percent from the fourth quarter of 2010 to the fourth quarter of 2011.
To take advantage of this situation and for the best chance at getting approved auto loans, credit-challenged customers might want to follow these suggestions:
• Be aware of the information contained in all three of your credit reports and know your three FICO scores.
• Choose a reasonably-priced car and settle on a payment no more than 10% to 15% of your gross monthly income (the lower the better).
• The more you have for a cash down payment, the better. Aside from new car rebates or dealer cash, 15% or more will increase your chances of an approval.
As we see it
With the number of bad credit auto loans increasing, if you've been turned down for a conventional car loan it doesn't mean the only option is a tote the note auto dealer.
If you've been turned down because of bad car credit, you should know that Auto Credit Express specializes in placing credit-challenged applicants with dealers that can give them their best chance at getting approved auto loans.
So if you're ready to take that first step in improving your auto credit, you can begin now by filling out our online auto loans application.