Why to Get a Bad Credit Car Loan Now?
None Should Be Discriminated When Getting a Car
America is fascinated by cars and owning one gives a great amount of pleasure. To buy a car today, car loans are a pre-requirement. But, for a bad credit borrower, a car loan seems a distant dream. Do you have a poor credit score? Is getting an auto loan difficult for you? Are lenders regularly rejecting your means loan application?
Well, if the answer is yes to all the questions, this article can help you get an auto loan already with bad credit. In fact, after reading this piece of writing, you will understand why this is the best time to acquire a bad credit car loan to buy your dream car.
Heres Why Getting a Bad Credit Car Loan Is Easier than You Think
Upswing In means Sales
7.3million- Thats the total number of vehicles sold in the first half year of 2012! There has been a 14.8 percent rise in car sales since last year. This sale can be credited to many factors like car manufacturers are pushing for car sales. already European auto makers consider the American market profitable. They are vying for higher sales in America because of problems in their economy. With this new development, you can get newer car models and better motive programs. Also, easy flow of credit has played a major role.
Lowest Delinquency Rates
The delinquency rate is the percentage of auto loans that have not been paid by the borrowers. TransUnion in its first quarterly report of 2012 mentioned that auto loan delinquencies are down to 0.36 percent which is very less compared to 0.46 percent – the fourth quarter consequence of 2011. These figures have proved that borrowers are more serious and diligent in making regular payments.
TransUnion also mentioned that there is a rise in lending in addition as leasing in the non-chief risk part. With low delinquency rates, lenders are able to put more trust in the equation. They have now understood that people will definitely make payments. When the overall mood is positive, getting a bad credit car loan becomes easier.
Investors are buying securities made up of car loans as they are comparatively safe and profitable. They fare better than home loans because cars are major requirement for us. We may give our home 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 of sub-chief car loan related ABS. This is a 20% jump from last year.
This deal proves that auto lenders will now be offering more poor credit car financing options because it has become a lucrative option for them. They can easily bundle-up your loan as securities and earn from it. So, auto financing companies are now taking risks in offering sub-chief credit auto loans.
All these factors rule to one conclusion that lenders are now interested in providing you bad credit car financing. It is no longer difficult to obtain a loan. It is not difficult to buy your dream car anymore!
Are You READY For A Bad Credit Car Loan?
Before getting a car loan for people with bad credit, you must consider these important points so that you dont doubt your decision later.
1. Its important that you choose an inexpensive in addition efficient automobile. A used car is the most affordable option with you. It is a perfect choice because its depreciation rate is lower than new cars. While choosing a car, dont forget to check its title. Get it inspected from your trusted mechanic.
2. If this is your first loan after your score nosedived, you must be ready to pay a higher interest rate.
3. Choose a shorter auto loan term so that you dont increase any chance of an upside down auto loan.
4. Regular payments are extremely necessary to enhance your credit score and to avoid it from further decline. If you make on-time payments, you will get better interest rates next time.
5. Most lenders have lock-in period during which you cannot refinance or trade-in your car. This is usually the first six months or the first year of the loan term. So, dont choose any car loan that makes you uncomfortable because you will be stuck with it for some time. Take time to analyze and select a bad credit car loan quote.
These meaningful cues are very crucial in reaching a good decision. You must understand that bad credit auto loans are easily obtainable but you can make them more comfortable by remembering these points.
Now that you know how easy it is to get a bad credit car loan, dont wait anymore. Once you consider all the points mentioned in the above use, you must embark on the journey of regaining your old good credit.