Tag Archives: credit

Late Payments Rise as More Consumers Enter Market

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Typically when we report on the state of finance in the auto industry, it is to highlight how much something has decreased since the collapse a few short years ago.  We look at the reports that the credit unions put out and have seen a consistent trend in the lower of overdue loans.  However, a recent report from Transunion has shown growth in that very area.  While this may seem like terrible news to see, there is a silver lining underneath it all.

TransUnion is reporting that late payments on loans have grown about 1.1 percent in the last three months of 2013.  Still, the late payment rate is below 1.3 percent overall, a good sign.

The reason I don’t see an issue with the rise in payment delinquency is because it is showing that more people are back in the market.  Some have been forced in, due to an aging vehicle, but many more are coming back into because of the availability of financing and due to a stream of high quality new vehicles.

If anything, it is a sign that people need to step extra carefully when getting a loan.  We’ve provided tips before on how to best prepare to get an auto loan so that you will not end up a statistic on the delinquency rates.

For more information on how to obtain a loan, contact a sales rep at Bayside Chrysler Jeep Dodge.  We have a wide selection of new and used vehicles to look at with competitive financing offered.  Like us on Facebook and follow us on Twitter to see more financing tips and for special monthly offers.

Getting an Auto Loan With No Credit History

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We have spoken at length in past articles about the importance of a credit history. So much rides on what is and isn’t on that list. What about the people who do not have a robust credit history? These individuals need cars too, so what are they to do when it comes time to buy but the credit history is lacking. Here are a few tips to help people who find themselves in that situation.

First, simply acknowledge that obtaining a car loan without a credit history is achievable but somewhat difficult. It will mean going the extra mile where someone else may not have to. Do not let yourself get discouraged.

Now that the pep talk is over, it’s time to do what needs to be done to get that auto loan. The first way to make life easier is to accumulate a larger down payment. The more money one can have to put towards the purchase of a vehicle, the easier the process is. It’s the best way to get the necessary loan as well as a better interest rate. Having a larger down payment tells the dealership that you are capable of producing the funding to pay back a loan.

If that is not an option, keep in mind that dealerships will go beyond a credit history when looking at applicants. The lender needs to know if the applicant is able to pay back the loan they are about to give. If they can’t get that information from a credit history, then they’ll look in other places. What needs to be brought in to help is documents such as a bank statement or recurring bills such as utility or phone bills. These show that you have monthly payment obligations that are being paid off. Another piece of information that can really help is proof of employment. Showing that you have steady work is an indicator of someone able to pay off a monthly loan.

Obtaining an auto loan without a credit history is tough, but it is achievable. Contact a sales person at Bayside Chrysler Jeep Dodge and find a time to come in so we can work with you to find the proper loan. We’ll get you driving away in the new or pre-owned vehicle best suited for your lifestyle. Be sure to like us on Facebook and to follow us on Twitter to see our monthly specials.

 

Image courtesy of renjith / FreeDigitalPhotos.net

Getting an Auto Loan While on Unemployment

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If there is one thing I don’t need to remind people of, it is that the economy is still not the best.  Yes, we are in recovery, but it is a slow one.  Because of that, many people are still struggling to find employment.  Those same people also still need vehicles.  So, is it possible to get an auto loan while on unemployment?

There’s really no easy answer to that broad question I just so happened to ask.  An easy answer is yes, you can get an auto loan with the only source of income being unemployment.  However, as with all things, some nuance is needed to be completely honest.

Unemployment is not the kiss of death to someone’s credit.  It is very possible to be receiving benefits while still maintaining a high credit score.  With a high credit score factored into the credit check, it does raise the possibility of being accepted for an auto loan.

The best way to ensure you can get an auto loan, regardless of being on benefits, is being able to show the ability to pay back a loan.  That’s really what dealerships are looking for, knowledge that you’re good for it.  So ask yourself a question, are you only receiving income from unemployment benefits?  How about social security or child support?  Any alternative source of income can help your chances in proving that you’re capable of maintaining monthly payments.

It is more than possible to get an auto loan while on unemployment; it just means that you need to be acutely aware of your finances.  Granted anyone looking to apply for an auto loan should be aware of these things, it just becomes that much more of a necessity to increase your chance of getting an auto loan.

Have any more questions about the subject?  Contact a sales rep at Bayside Chrysler Jeep Dodge and they will work you through the process to acquiring an auto loan for the right new or used car.  Be sure to like us on Facebook and to follow us on Twitter for more tips and special monthly offers.

Image courtesy of Gualberto107 @ FreeDigitalPhotos.net