Auto Loans Aren't Back Yet

With so many consumers defaulting on their auto loans, it is no wonder that the auto finance industry has pulled their support from those with less than perfect credit ratings. For most of those that have defaulted it is simply a case of something like mortgage payment or car loan – and it is more important to have a roof over your children’s heads than it is to drive a car.

But with all the talk of bailouts and consumer help the auto loan industry is starting to turn itself around. This does not mean however that it is impossible to get one. There are simply some givens that are not around anymore for you to pick from.

For example, everyone was always offering 100% financing and paying off your trade no matter what you owe. Not so anymore. Both of them will fall short of bringing them the money that they need to give you to get the deal done; and many say that they are just like the subprime loans that are out there for homes.

Even 0% financing is not really around for the majority of players. You are going to have to have spectacular credit to get it, and if you don’t get it, you are still going to have to have great credit to get a 7% loan. Then there is the car that you will trade in on that car loan. Trade ins are just not worth it for the dealership anymore.

The car companies are making it tough on the dealers as well. They are limiting the amount of money that they can spend on stock inventory, which leaves them with less merchandise to move and slimmer pickings for the consumer.


 

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