Tag Archives: bad credit

The Cars That Sub-Prime Borrowers Are Buying

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Dodge AvengersQuick question: what cars are sub-prime borrowers buying? The answer may be surprising.

Carfinance.com wanted to know this very answer. Rather than following my example and randomly asking the internet, they put together data between October 2012 and March 2013. What the conclusion they found in that window of time was that the people who make their auto purchase as sub-prime borrowers are buying completely different cars than those in the top-selling slots.

The top three selling midsized sedans in the US is the Toyota Camry, Honda Accord, and the Nissan Altima. These three didn’t even break the top ten for sub-prime. So what was on the list then?

Topping it was the Dodge Avenger followed by the Kia Forte and Kia Optima in second and third respectfully. It’s clear from looking at the full list of the top ten that people suffering from credit issues and other financial complications are looking for small or midsized sedans. At least in the new category they are.

Used tells a different story. The top seller in that time period was the Ram 1500. The Dodge Charger came in at the fourth slot. A wide range of vehicles are on the list, but trucks were more numerous than on the new list.

Are you having credit issues and are looking to purchase a new or used vehicle, such as the Avenger or the 1500? Contact us at Bayside Chrysler Jeep Dodge. We love to say yes! We’ll work with you to put you in the car best suited for you. Don’t forget to like and follow us on Facebook as well as Twitter.

Increase of Auto Loans Tied to Employment

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ID-100144096A recent study done by loans.org has pleasant news for the auto industry.

The website ran a study that combined both employments records from the Bureau of Labor Statistics and the Quarterly Report on Household Debt from the Federal Reserve. They looked for a correlation between auto loan debt and employment rate. Here’s what they found: between the third quarter of 2009 and the first quarter of 2013, auto loan borrowing rose as unemployment went down.

I can’t say I’m too surprised by that finding. Less people unemployed means more people have income. More income means that people are going to buy more things. That’s not a terribly conclusion to come to without doing a lick of research. Still, it’s nice to have numbers to prove something that should most definitely be true.

Another thing to note about the correlation between employment and auto loans is that there could be a number of people that were on long-term unemployment. If the people in question were subjected to those harsh conditions, they may have had to stretch to make their lively hoods work. That means ignoring the need to purchase a new car and relay on a broken down model frankenstein-ed to survive as long as possible. Now that they have reliable income again, it’s time to replace such a vehicle.

The economy has been shown to be improving and families have found themselves needing financing to replace aging vehicles. Thankfully as the market has bounced back along with the buyers, so have the auto loans. They are easier to obtain today than ever. Business is booming for the industry.

If you need a car, now is the perfect time to stop in to Bayside Chrysler Jeep Dodge and sit down with us as we work to put you in the vehicle you need.  We provide the Queens area with top quality customer service and want to work with you to satisfy your car-purchasing needs. We love to say yes! Like us on Facebook and follow us on Twitter for more financial advice and monthly parts and service specials.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Interest Rates Remain Low as Auto Sales Increase

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Comerica Bank releases a report every three months known as the “Auto Affordability Index.”  What the report does is take the median income for a family in the US and the average price of a new car and compares them to see how many weeks it would take to finance the purchase.  The most recent one brings good news to people who are having a difficult time due to having bad credit.

Auto Credit Express breaks down the report in their latest blog.  An averaged-priced new vehicle took 23.6 weeks of income to buy.  Buyer spent $900 more on new vehicles in the fourth quarter of 2012 than in the third of the same year.

Even though there was a rise of late in prices, sales continue to be very good.  Some of that is due to an up-tick because of Hurricane Sandy forcing many drivers back into dealership to replace destroyed cars.

What that means is that demand is rising and so will be interest rates.  As of right now, you can still get yourself a great deal.  If you’ve needed to purchase a vehicle but have been holding off, now is the time to take advantage of the affordability before it goes up.

Contact us at Bayside Chrysler Jeep Dodge and see why we love to say yes.  We’ll help you find the new or pre-owned vehicle that suits your life-style.  Follow us on Facebook and Twitter for all our monthly vehicle incentives.