Best Chance in Years to Secure an Auto Loan

A recently published national consumer trend report shows that auto loan debt has risen to the highest point in four years.  Analysts contribute this increase to lenders wading back into auto financing in the subprime market.  Lending to subprime customers jumped by double digits, resulting in over 7 billion loan dollars.  With this increase, auto loan funding is back to pre-recession levels.  Both traditional lending institutions, such as banks, savings and loans, and credit unions as well as auto finance companies have seen the highest funding levels in years.

Lenders are Lending!

This is a very positive signal that banks and lending institutions have loosened up on the purse strings and are jumping back into the subprime market.  For those with poor or no credit who are looking to purchase a vehicle, this bodes well and may help increase their changes of qualifying for an auto loan.  According to Equifax chief economist Amy Crews Cutts, “Auto Lending, including leases, is now back to pre-recession levels, driven in part by the very attractive interest rates being offered on these loans and a gradual increase in willingness to lend to less than perfect credit borrowers.”

Times Have Changed

With the majority of the used car market being made up of subprime borrowers, lending institutions and dealers alike have realized this segment of auto buyers needs attention.  As a result of the economic downturn, banks tightened up on their purse strings and the ability to obtain an auto loan became extremely difficult. Lenders were leery about lending in general and took a “wait and see” attitude.  Basically, lenders stopped lending, except in those cases where a person had a long and excellent credit history.   Thankfully, for those currently in the market to purchase a vehicle, times are changing, as seen in the consumer trend report.

If you are currently looking to apply for an auto loan, check out BlueSky Auto Fiannce!  Auto lending companies such as BlueSky Auto Finance are fully integrated with banks and lenders who specialize in providing auto loans.  When you apply for financing through the BlueSky website, you will be notified immediately if you have been approved for an auto loan.  For more information in applying for auto financing through BlueSky Auto Finance click here, or call us at 1-800-BLUESKY.

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