Tag Archives: interest rates

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.

Know Your Credit Score: First Rule of Auto Purchasing

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What’s the first thing you do before you head into the dealership to purchase a vehicle?

That’s the question that Gerri Detweiler wrote on a post for Credit.com.  She found herself in a position many car buyers have been in of late.  Due to the recession, car owners are holding onto their used vehicles for longer thus driving up the price of pre-owned due to scarcity.  She was forced to look into the new market and wasn’t entirely certain how to start.  Thankfully, her husband had the experience and guided her into the process.

She has provided some solid advice on what to do when new to the market and the questions you should ask yourself before even setting foot in the dealership.  The very first one you should ask is the one that’s not the most obvious.  While certainly things you should know, such as knowing what you can afford, checking with Kelley Blue Book to estimate your trade-in value, or going through Edmunds and other report sites to see the best car for you, the one that you should know first is your credit score.

For whatever reason, this one gets lost in the mix.  Not knowing your credit score is the first step to disaster when shopping for a new vehicle.  Gerri Detweiler found a great quote from Phil Reed who used to work for Edmunds in which he said, “So what happens is they go directly to the dealership without checking their credit scores – which is not a good thing to do – and their attitude is “get me done.”

Knowledge is always power when it comes to negotiating with interest rates.  By knowing your credit score, you’re already one step ahead of the bunch.

Looking for an auto loan?  Check out Bayside Chrysler Jeep Dodge in the Queens New York area.  We offer quality customer service to all who come through the door.  Works with us and you’ll see why our slogan is “We love to say yes!”  Follow us on Facebook and on Twitter for more tips and advice and our monthly specials!

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.