The auto loan market has turned around in just a few years. The economy may be sluggishly making the crawl towards improvement, people with challenged credit are finding it easier and easier to come into a dealership and drive out in a car.
A few years ago, at the peak of the recession, this was nigh impossible to do. As many dealerships will attest to, if you had bad credit the typical thought process was just don’t even bother coming in. That attitude has changed.
Thanks to the Federal Reserve keeping interest rates down to near zero, the subprime loan market is thriving again.
The market has since been surging with people in the subprime credit category. These loans account for more than 27 percent of auto loans according to Experian.
That might seem like a red flag seeing as how all of us remember that it was this same situation with mortgages that lead to the collapse not that long ago, but analysts are quick to remind these same people that auto loans and cars work much differently than homes. Cars are much easier to appraise and put value on. Plus, vehicles are essential for people’s lives with work commutes, so a paying off a car typically takes priority.
Auto loan lending for subprime customers is easier to do than ever. If you were turned down for a loan a few years ago, now is the time to take advantage of the improved market. Contact a representative at Bayside Chrysler Jeep Dodge and find out how we can help you find that right new or used car for your lifestyle.