CREDIT CRUNCH HITTING THE AUTO LOAN MARKET, TOO
Housing isn't the only market to feel the effects of the current credit crisis -- the auto loan market has been hit too.
As lenders raise their standards for approval, loan seekers are finding it increasingly difficult to secure financing. Those who can obtain loans are settling for lower-priced cars in some cases.
Some of the largest lenders are taking the most extreme measures. JP Morgan Chase now requires larger down payments and is limiting loan length for those with lower credit scores. CitiGroup says it will reduce the number of loans it grants, and has let some 800 workers go in its auto-lending department.
Even higher-credit types are feeling the pinch. "People with decent credit aren't able to get the terms they think they should get," said Michelle Primm, managing partner of the Cascade Auto Group in Cuyahoga Falls.
Related Story
Wednesday, May 28, 2008
THE FIVE DEADLY CAR BUYING SINS
THE FIVE DEADLY CAR BUYING SINS
Before you consider taking out an auto loan, maybe you should think about how you're buying your car in the first place. A lot of people make mistakes -- which can be avoided if you know what they are beforehand.
For starters, buyers are often tempted to go for the hottest-looking number on the lot, which dealers are all too happy to showcase. To avoid this pitfall, experts advise, spend a few minutes thinking about what you'll use the car for -- not how you'll look behind the wheel. Hauling the kids to soccer practice? Loading groceries into the trunk on a rainy day? You'll be surprised how quickly your desires can change.
Other common buying errors include budgeting based only on monthly payment, talking trade-ins too early and not researching the dealer before you buy.
Related Story
Before you consider taking out an auto loan, maybe you should think about how you're buying your car in the first place. A lot of people make mistakes -- which can be avoided if you know what they are beforehand.
For starters, buyers are often tempted to go for the hottest-looking number on the lot, which dealers are all too happy to showcase. To avoid this pitfall, experts advise, spend a few minutes thinking about what you'll use the car for -- not how you'll look behind the wheel. Hauling the kids to soccer practice? Loading groceries into the trunk on a rainy day? You'll be surprised how quickly your desires can change.
Other common buying errors include budgeting based only on monthly payment, talking trade-ins too early and not researching the dealer before you buy.
Related Story
Thursday, February 21, 2008
Car Loan Application Frequently Asked Questions
1. I have a bad credit history. Will I get an approval for auto loans?
The companies and dealers we work with accept a variety of applicants, many of whom have a poor credit history. We will likely be able to provide you the right help no matter how bad your credit situation is.
2. Is it compulsory to have a co-signer?
It is not a requirement for have a co-signer. But with a co-signer you can likely get better interest rates.
3. I have no credit. Can I get an auto loan?
If you have no credit, then you can start your loan journey with us. We can assure you it will be a good one.
4. What interest rates will I qualify for?
The interest rates you will pay for auto loans will depend on loan amount, term, credit rating, repayment ability and market trends. A dealer or financial institution will contact you with more information after you apply.
The companies and dealers we work with accept a variety of applicants, many of whom have a poor credit history. We will likely be able to provide you the right help no matter how bad your credit situation is.
2. Is it compulsory to have a co-signer?
It is not a requirement for have a co-signer. But with a co-signer you can likely get better interest rates.
3. I have no credit. Can I get an auto loan?
If you have no credit, then you can start your loan journey with us. We can assure you it will be a good one.
4. What interest rates will I qualify for?
The interest rates you will pay for auto loans will depend on loan amount, term, credit rating, repayment ability and market trends. A dealer or financial institution will contact you with more information after you apply.
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