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Tough to
Get a Car Loan
The credit
crunch is not just affecting home prices,
but is affecting every industry. You would
be hard pressed to find an industry that
has not been negatively affected by the
credit crisis, and the auto loan industry
is definitely feeling it as well. The
problem is that people can’t afford their
homes, but they will give up paying credit
cards and auto loans before they stop
paying on their home. For many it is much
more important to have a roof over your
head than a car to drive.
However, the number of delinquent auto
loans out there today has increased ten
fold so that now the auto loan dealers are
wary about loaning to anyone. This has
made it tough to get a car loan in this
economy, which then leads to less cars
being sold, and one more industry looking
at laying off their employees.
But there are still auto loans to be had.
Is it as easy to get a car loan as it used
to be? No, it isn’t, but it is better than
it could be. The auto loan industry is
aware that they have to start taking
bigger chances on their clients if they
want to survive, but it is tough to do
when you aren’t sure if that client is
going to lose his job tomorrow and then
add that car loan to the ranks of
delinquent ones.
Getting car loans through private lenders
is one way to go, but know that no matter
where you go, the days of no down payment
with a kind of good credit score are over.
They want down payments and they want
great credit scores before they will even
consider you for an auto loan.
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February 2009 Archives
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