CREDIT CRUNCH HITTING THE AUTO LOAN MARKET, TOO

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.

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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.

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