Bad credit loans for car purchases increasing

Recent statistics from the car-lending industry are showing that it is easier to get car loans with poor credit. At each and every tier of credit rating, it is becoming easier to get car loans. Additional choices for bad-credit borrowers are also expanding. Article resource – Bad credit loans for car purchases increasing by Personal Money Store.

Drop in lending short term loan

During 2008, the amount of lending of installment loans to customers with a bad credit score dropped off a cliff. Automobile loans, depending on the credit rating of the borrower, were approved about 60 to 90 percent of the time before 2008. In 2009, only about 5 percent of applications for auto loan financing from bad-credit borrowers were approved. Even borrowers with good credit only had a 70 percent chance of getting an auto loans bad credit.

Auto lending’s effect on the economy

Auto lending has a definite effect on the financial industry. The auto industry accounts for about 4 percent of the U.S. economy. 250,000 auto-industry jobs have been chopped since the economic downturn began. The simple explanation is that more auto jobs are lost when fewer cars are sold.

Getting better lending options

For borrowers who are planning to buy a new automobile, you will find growing opportunities for extra cash. To help control risk, numerous lenders are requiring bigger down payments or more valuable trade-ins for bad-credit borrowers.Certain incentives, like zero percent interest, are helping lure customers back to car lots too. Most of the new automobile loan are coming from financiers and banks that specialize in smaller loans, rather than big banks. If your credit is anything but perfect, though, then the auto-lending market right now is incredibly tough. Just two to three years ago, there was a 60 percent chance of a “subprime” borrower getting an autoloans. Though the rates are now improving, approval rates at the moment stand at about 9 percent.