Although the subprime market continued to grow during the first quarter of this year, the increase in repossession rates is sure to cause these finance companies to moderate the pace of lending. If this happens, borrowers with larger down payments (with cash down or real trade equity) who are willing to consider a range of affordable vehicles will have a much better chance of receiving an auto loan approval.
With companies like ZipCar, GetAround and Hertz on Demand, it’s becoming much easier to get away with just renting a car. So should you rent or should you buy?
Although it doesn’t always result in an auto loan approval, consumers that have experienced problem credit and belong to a credit union at least owe it to themselves to try this option first.
Consumers that need a car but have concerns about their credit need to be familiar with some of the basic conditions that typically need to be met from most high risk auto lenders.
For consumers that have experienced recent problem credit need a car loan, there’s a real good chance that at some point in the process they’ll need to furnish the lender with a list of personal references.
Car buyers with poor credit scores often have difficulty finding lenders that are willing to work with them.