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Monday, July 15, 2024

Better Options When Financing a New Car

A sign that the automotive crisis is on the rebound, lenders are extending loans to more buyers, even those with poor credit.

According to a recent article the average consumer can find financing again. Dealerships throughout the country are seeing easier financing standards from the majority of lenders.

What has changed? Credit markets are opening up, increasing lenders’ liquidity. For example, GMAC has raised about $3 billion combined with $3.79 billion from the US Treasury in the past months. GM dealers said, “”GMAC is doing a lot more deals than they did even two months ago, and it’s helping us sell more cars.”

Consumers have paid down their debt over the past year, improving credit scores. Though lenders are still strict, they are now extending loans to primer or better. Buyers who make large down payments are more likely to be financed.

Consumers are more realistic regarding financing. The recession has created educated buyers. Today when consumers enter the dealership they are serious about buying and prepared for the financing process.