Subprime leasing may be the next area lenders can expand into in regards to bad credit car buyers. The subprime market could benefit from more lending options that offer lenders a lower than anticipated risk, while still serving the needs of consumers with damaged credit.
In a perfect world, when a vehicle breaks down or is no longer drivable, drivers would simply go to a car dealership and buy a new vehicle. But the world is not perfect, nor does it stop if you are without transportation. For a car buyer who is dealing with bruised credit, having to buy a vehicle can feel like a total nightmare. Making a vehicle purchase doesn’t have to be hard, even for those with bad credit. You need a vehicle to get to and from your job and live life in general. There are dealers out there who can help you so you don’t need to resort to buying a very cheap car from a private seller, which can be highly risky.
Earlier this month, the U.S. Labor Department reported that the national unemployment rate in May was 5.5 percent. While that is a lower number, there is another number that is more important: the U-6 number. This is the number of workers who are “marginally attached” to the U.S. workforce. That number is 10.8 percent, nearly double the amount of those who are currently unemployed. When potential car buyers find themselves in situations where they have to work two jobs or only have one part time job with a limited income, it makes the process of getting a car very difficult.
You’re going off to college, and you need a car. The problem is that you’ve never financed anything before, so you don’t have much of a credit history. How can you get approved for an auto loan?
Sitting back and enjoying the fireworks and delicious barbecue is a tradition for many Americans, but sometimes, car buying waits for no one. Auto dealers across America know this. So, if you’re wondering if there are going to be opportunities to find great deals on new and used vehicles on this 4th of July weekend, you will happy to know that there’s a good chance that dealers in your area will be ready and waiting for you to buy. While car dealers are always looking to make sales, there are certain times of the year when car dealerships are more eager to sell, and Independence Day is one of those. Common sales deals aside from reduced prices include incentives such as zero down financing and low to no interest financing.
With the length of the average auto loan increasing, it’s important that borrowers with low credit scores keep their loan terms as short as possible. Not only will they save money on interest charges, this will also allow them to trade out of the car sooner and into a new loan with a better interest rate.
The latest report from Experian shows that the growth in subprime auto loans is slower than the overall market. As a result, borrowers need to be aware of their credit situation, have a down payment and pick an affordable vehicle in order to give themselves the best chance of success.