The latest report from the Fannie Mae indicates that the overall improvement in the economy will begin to accelerate in the second quarter of next year is welcome news for bad credit auto loan shoppers
The latest from Fannie Mae
At Auto Credit Express, we see that Fannie Mae's Economics & Mortgage Market Analysis Group has just released its December 2010 Economic Outlook– a report that states that “the economy is starting to 'perk'. “
And while forecasted growth was upgraded from 2.9 percent to 3.4 percent based on the positives in the recent reports, this is based on the “anticipation of improving labor conditions” and flies in the face of “the huge disappointment from the November employment report.”
Of special interest to bad credit auto loan shoppers is the mention of how vehicle sales have performed in the current economy: “The rebound in vehicle sales in the current recovery has been stronger than in other recoveries since 1980 (data are not available for prior recoveries). While sales dropped sharply in September 2009 after the Cash for Clunkers program ended, sales have rebounded quickly to a stronger pace than was seen prior to the subsidy and now stand at the highest sales level since September 2008.”
As we see it
The bottom line to the Fannie Mae report is that automobile sales are increasing at a better rate than in any economic recovery since 1980 – a sign that lenders of all types, including those that offer bad credit car loans, are returning to the market.
With that in mind, we offer the following advice to consumers seeking bad credit auto loans in the coming months:
• Order a credit report from each of the three bureaus, know what they contain, and make any corrections before applying for car loans with bad credit
• Once you've made the corrections, pay for a credit score for each one
• Plan on coming into a bad credit auto loan with at least a 10 percent down payment in cash or actual trade equity
• Keep the term of the loan as short as possible
• Buy a compact or midsize car and put off buying anything larger until after you've reestablished your car credit.
For additional help
For more than two decades Auto Credit Express has helped people with bad credit buy cars and reestablish their auto credit through a nationwide network of affiliate dealers that specialize in second chance auto loans.
So if you are serious about getting your car credit back on track, you can begin by filling out our bad credit car loan application now.