A report today from Experian Automotive shows that the number of bad credit auto loans increased during the third quarter of this year
If you’re considering applying for horrible credit auto loans you should find the latest report from Experian Automotive to be encouraging news.
We tend to watch for this type of news after almost two decades of involvement in bad credit car sales here at Auto Credit Express.In fact, we even designed a web site so applicants with bad credit can learn about tote the note dealers, repossession and today’s topic, the general state of no credit auto loans.
The December 1, 2011 report begins with the headline, “Subprime Automotive Loans Increase in Q3 2011.”
It continues with the following:
“The automotive finance industry is continuing a steady climb to good solid footing,” said Melinda Zabritski, director of automotive credit for Experian Automotive. “Consumers continue to do a better job of repaying loans, while at the same time, many of the most risky loans from 2007 and 2008 are now off the books. These factors combine to lower the total volume of dollars at risk and give lenders more confidence in loosening their overall lending standards.”
“Overall, our Q3 analysis shows very positive signs for the automotive lending industry,” said Scott Waldron, president of Experian Automotive. “With more loans being booked outside of prime, lenders are showing they are willing to be more flexible in their lending strategies. However, consumers may still have the impression that lending is extremely tight, so it is important for lenders and retailers to educate car shoppers that there are financing options available to a wider group of consumers.”
How this might affect your problem credit auto loan application
One other thing the report noted was that 21.87 percent of all new vehicle loans were in the nonprime, subprime and deep subprime categories – with the largest percentage in the last two (highest-risk) groups.
This means that problem credit auto loan customers with the worst credit will find themselves in competition for these loans and might want to follow these suggestions:
• Know the contents of your credit report and your FICO scores.
• Choose a reasonably-priced car and with a payment no more than 10% to 15% of your gross monthly income (the lower the better).
• The more cash you have for a down payment, the better. Not counting new car rebates or dealer cash, 15% or more will increase your chances of an approval.
The Bottom Line
Even though the competition for bad credit auto loans is increasing, if you’ve been turned down for a conventional car loan it doesn’t mean the only choice is a tote the note car dealer.
In addition, Auto Credit Express can help you find a dealer for your best chance at an approval for a bad credit car.
So why not take the first step in the process of establishing your car credit by filling out our online car loans bad credit application.
Get your free credit score now! Get a copy of your most recent credit score.
Are you paying too much on auto insurance? Compare rates in your area and save.