Why get a car loan with bad credit now?
Posted by Mords1944 on May 30th, 2020
Neither should be discriminated against when obtaining a car
The United States is fascinated by cars, and having one is very pleasant. To buy a car today, auto loans are a prerequisite. But, for a bad credit borrower, an auto loan seems like a distant dream. Do you have a poor credit score? Do you find it difficult to get a car loan? Are lenders constantly rejecting your vehicle loan application?
Well, if the answer is yes to all questions, then this article can help you get auto loan even with bad credit. In fact, after reading this writing, you will understand why this is the best time to get a bad credit car loan to buy the car of your dreams.
Here's why getting a bad credit car loan is easier than you think
Increase in vehicle sales
7.3 million - That's the total number of vehicles sold in the first half of 2012! There has been a 14.8 percent increase in car sales since last year. This sale can be attributed to many factors, as automakers are pushing for car sales. Even European automakers consider the American market profitable. They are competing for higher sales in the United States due to problems in their economy. With this new development, you can get newer car models and better incentive programs. Furthermore, the easy flow of credit has played an important role.
Lower delinquency rates
Delinquency rate is the percentage of auto loans that have not been repaid by borrowers. TransUnion in its first 2012 quarterly report mentioned that auto loan delinquencies fell to 0.36 percent, which is much lower compared to 0.46 percent, the result of the fourth quarter of 2011. These figures have shown that Borrowers are more serious and diligent when making regular payments.
TransUnion also mentioned that there is an increase in loans and in the non-preferential risk segment. With low delinquency rates, lenders can rely more on the equation. Now they have understood that people will definitely make the payments. When the general mood is positive, getting a Bad credit car loans in Canada becomes easier.
Investors are buying auto loan stocks as they are relatively safe and profitable. They do better than home loans because cars are an important requirement for us. We can give our house, 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 ABS related to subprime auto loans. This is a jump of 20% over last year.
This agreement demonstrates that auto lenders will now offer poorer credit auto financing options because it has become a lucrative option for them. They can easily group their loan as securities and earn from it. Therefore, auto finance companies are now taking risks by offering car loans with subprime credit.
All of these factors lead to the conclusion that lenders are now interested in providing you with bad credit auto financing. Getting a loan is no longer difficult. It is no longer difficult to buy the car of your dreams!
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