usaNo one should be discriminated against when buying a car
America is fascinated by automobiles and owning one is a great pleasure. To buy a car today, auto loans are a prerequisite. But for a bad credit borrower, a car loan seems like a distant dream. Have a low credit score? Having a hard
time getting a car loan? Are lenders constantly turning down your auto loan application?
Well, if the answer to all questions is yes, then this article can help you get a car loan even with bad credit. In fact, after reading this writing, you will understand why this is the best time to purchase a bad credit usa car loan to buy the car of your dreams.
Here's why getting a bad credit car loan is easier than you think
Increase in vehicle sales
7.3 million - that's the total number of vehicles sold in the first half of 2012! There has been a 14.8 percent increase in car sales since last year. This sale can be attributed to many factors, such as car manufacturers driving sales of cars. Even European automakers see the US market as profitable. They are competing for higher sales in the United States due to problems in their economy. With this new development, you can get newer car models and better incentive programs. Also, the easy flow of credit has played an important role.
Lower delinquency rates
The delinquency rate is the percentage of auto loans that borrowers have defaulted on. TransUnion in its first quarterly report for 2012 mentioned that auto loan delinquencies fell to 0.36 percent, which is well below the 0.46 percent, the result of the fourth quarter of 2011. These figures have shown that borrowers are more serious and diligent in making regular payments.
TransUnion also mentioned that there is an increase in loans and leases in the non-preferred risk segment. With low delinquency rates, lenders can rely more on the equation. Now they have understood that people will definitely make payments. When the overall mood is positive, it is easier to get a bad credit car loan.
Investor confidence
Investors are buying auto loan composite securities as they are comparatively safe and profitable. They do better than home loans because cars are an important requirement for us. We can give our house, but a car is necessary for our employment. This makes them a safe bet. The recent example of this is how companies like GM Financial, Santander Consumer USA, and other lenders have issued $ 10 billion in ABS related to subprime auto loans. This is a 20% increase over last year.
This agreement shows that auto lenders will now offer lower credit auto financing options because it has become a lucrative option for them. They can easily group their loan as securities and earn money from it. Therefore, auto finance companies are now taking risks by offering high-risk credit auto loans.
All of these factors lead to the conclusion that lenders are now interested in providing you with bad credit auto financing. It is no longer difficult to get a loan. Buying the car of your dreams is no longer difficult!
Ready for a bad credit car loan?
Before you get a bad credit car loan, you should consider these important points so that you do not doubt your decision later.
1. It is important that you choose an economical but efficient car. A used car is the most affordable option for you. It is a perfect choice because its depreciation rate is lower than that of new cars. When choosing a car, don't forget to check its title. Have it inspected by your trusted mechanic.
2. If this is your first loan after your score plummeted, you should be ready to pay a higher interest rate.
3. Choose a shorter auto loan term so you don't increase your chances of a reverse auto loan.
4. Regular payments are extremely necessary to improve your credit score and prevent further deterioration. If you make payments on time, you will get better interest rates next time.
5. Most lenders have a lock-in period during which you cannot refinance or trade in your car. These are usually the first six months or the first year of the loan term.
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