Category Archives: Used Car News

Auto Loans Are Easier Than Ever to Get!

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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.

Auto Loan Balances on the Rise, Delinquency on the Fall, Now is the Perfect Time for an Auto Loan

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Good news in the financial world, auto loan balances are high and delinquencies are down.

That might seem like an odd thing to spell out good times for the finance world but it makes sense when you break it down. Firstly, having the outstanding balances in regards to auto loans nation wide, that’s good because it shows that people are getting loans for vehicles. Experian is reporting that the balances are at an all time high even, the highest they’ve been at in seven years.

On the delinquency side of the auto loan equation, those are down. The rate on people behind on loans for 30 days has dropped off from 2.67 percent in the third quarter of 2012 to 2.58 percent in the same quarter of this year. It might not seem like much, but keep a perspective on how bad things were for a while and you’ll see why so many are invigorated to see this trend continue.

The reason these two side by side spell out such good news for the industry as a whole means that institutions will be better about lending. “The availability of credit, combined with consumers’ continued strong performance repaying their loans, has a positive spiral effect,” Melinda Zabritski, senior director of Automotive Lending at Experian, said. “It allows lenders to slowly but surely take on additional risk while providing more access to loans and paving the way for higher auto sales.”

Now is the best time to consider coming in for an auto loan. Bad credit, no credit, no problem. We here at Bayside Chrysler Jeep Dodge will work with you to find the suitable financing for the right new or used vehicle. Give us a chance and see why our slogan is ‘We Love to Say Yes, You’re Approved!”

The Benefits of No Credit Auto Loans

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One of the biggest problems that car buyers have are credit issues.  Maybe they fell behind on a payment because of a lost job or a sick family member, there are numerous ways to find a mark on a credit report.  There is, however, another issue with credit and that is some people don’t even have it.

This is typical with newer buyers, say students or newly weds, who are entering the world and discovering that weird catch twenty-two of needing credit get a loan but having no credit history.  Thankfully, there is a way around this.  The recent uptick in financing after the recession has caused dealerships to offer more deals for people, and that includes those with no credit.  It is entirely possible to apply for a no credit auto loan.

Now, the next question (and the right one to ask) is ‘what is the catch?’  Since the person asking for this loan doesn’t have any credit history to determine if they are good for the payments, the dealership is taking a much larger risk in issuing a loan to this individual.  For that reason, the dealership typically asks for a larger down payment on the car.  Another stipulation is that the fee for any late payments is larger.

For these reasons, when entering into a no credit auto loan, be sure to be aware of the deal and your own finances.  This loans can be a real blessing for people starting out and needing to build stronger credit as keeping up with the payments will help with gaining positive credit.  There are certainly risks, but for the responsible person, there’s genuine benefit.

Need an auto loan?  Contact a sales person at Bayside Chrysler Jeep Dodge.  We’ll work with you to find the perfect new or used car to fit your life-style.