Tag Archives: finance

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!”

Auto Buying Tips for First Time Buyers

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ID-10034421There’s a lot of life skills that are not taught to people. It tends to involve first time buyers of any major investment. There’s no high school class to understand what to look for in buying a new TV, in apartment hunting, and there’s not really much out there to help a first time car buyer outside of a family member who went through the same thing. It certainly doesn’t help when SB Wire puts out an article aimed to help those same individuals that commits an ungodly amount of grammar errors. Yet, beneath the atrocious way it’s written, there are good take aways from the article.

A typical scenario for a new car buyer would be a student who needs a set of wheels to transport him to college. It can be difficult for this person to get a loan, but they need to bear in mind that they are better off at the moment than someone who has poor credit.

There are steps to take to make sure you have the best chance at the dealership. One is preparation. Take the time to access your finances and see what your limit is on being able to spend monthly on a loan. Make sure to take into account other monetary factors involving the vehicle. You’ll have to pay for gas, any maintenance, the insurance, etc. Don’t put yourself into a situation where the car you bought is making it so you fall behind in other bills.

Next, think about putting a larger sum of money down. This will help you get the auto loan and also get a lower APR rate on the loan. Dealerships like to see this because it’s a form of reassurance that the y are good for the loan.

It’s never fun being new to something that requires this much homework and consideration. That doesn’t mean there aren’t options available to help or information to help deal with the frustration.