Tag Archives: sub prime

Improve Your Auto Loan Terms in 4 Easy Steps

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Shopping around for an auto loan can be a trying experience, especially with a low credit score. It can seem impossible to find the car you want at rates and terms you can afford. Most people don’t know that they can improve their chances of getting a better rate, though, by following these 4 simple steps.

  1. Be Honest with Yourself: Take a look over your personal finances and ask yourself how much you can really afford to spend. Do you really need a new car, or are you better able to afford a good used car? If your finances are tight already, then a reliable vehicle that generally doesn’t need a lot of repairs is a smarter choice than something flashier (and pricier).
  2. Research Before Going Into a Dealership: When you go into a dealership, that dealership assumes that you are ready to test drive and buy. If you want to research model reviews, it is better to do so before going in. Otherwise, you could end up buying a car you didn’t really want or hem and haw over the pros and cons of a model and waste the salesperson’s time. It is always good to go into a sale certain that this is the car you want, but keep in mind that the dealership’s sales staff make money on commissions. Be considerate of that, and if you aren’t ready to buy, walk away and let that salesperson help another customer.
  3. Bring a Down Payment: Fox Business recommends having a 20 percent down payment for a new car and 10 percent for a used car. By having that down payment, it increases the chances of getting a better interest rate and lower monthly payments.
  4. Shoot For a Shorter Loan Length: The value of a car, especially a new car, depreciates fairly quickly, so it is better to go with a shorter loan length. Even if it means higher monthly payments, you will probably end up with a higher interest rate if you get a longer loan.

Are you shopping for an auto loan but running into problems because of your credit? Give Bayside Chrysler Jeep Dodge a chance to help you. You can see our online new and pre-owned inventory here, and be sure to like Bayside on Facebook and follow Bayside on Twitter to get the latest news from the auto industry.

Image: FreeDigitalPhotos.net

Chrysler Sales Grow With Increase in Sub-Prime Loans

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The recession still remains fresh in everyone’s minds. That because to so many people out there, the recession hasn’t really left. Many are still struggling to find employment in the current job market, and many more are still trying to dig themselves out of a financial hole. News of late has been optimistic, and the auto industry is in correlation with it. The economy has been improving, and one of the chief economic stories is the revival of the auto industry. For a company like Chrysler, it’s not all that surprising, however, seeing as how sub-prime loans have helped boost their car sales.

Autonews.com is reporting that in the first quarter of 2012, 29 of every 100 auto loans for a Chrysler vehicle were to consumers with credit scores below 680. According to Experian, a score under that 680 counts as sub-prime. In order to see how this is a up-shift for Chrysler, just a few years prior, during the height of the recession, these loans only accounted for 16 percent.

Chrysler has said that it’s because lenders are reaching out more to the sub-prime market that they are seeing such a sales gain. The company has always traditionally relied on customers with poor credit and now more and more of these same customers are being qualified for loans. The majority of these customers saw a huge impact from the recession and as they recover, so does Chrysler.

If you’re one of the consumers who is dealing with poor credit, give Bayside Chrysler Jeep Dodge a try. Go here to take a look at the Bayside inventory online. Make sure to like us on Facebook and follow us on Twitter!

Image(s): FreeDigitalPhotos.net