Is it possible to attain a car loan for bad credit borrowers?
The car is a fascinating creation of Science, and owning one is the matter of pride and pleasure. If you want to buy a car, you may apply for the car loan. But, if you are with bad credit, you might feel whether to apply for the car loan or not. Know one thing that your credit score must not stop you from applying for the car loan. It is not difficult to gain approval for the loan even if the credit score is bad. Getting an auto loan is possible even if there is bad credit. There are various reasons why taking an auto loan with bad credit is easy.
An increase in the sale of cars
In the past few years since 2012, we can notice an upswing in the sales of vehicles. When we compared last year, the sale of cars has increased by 15% nearly. It is all due to the car manufacturers who are pushing the car sales. The European manufacturers of cars think that auto industry is profitable and so they are giving a boost to the car manufacturing. New car models are coming up, and incentive programs are offered to boost the sales. This directly has a positive impact on the economy. Now you can buy new car models easily with the help of incentive programs.
Low delinquency rate
Delinquency rate implies the auto loans not being paid by those who borrowed money. It is found by TransUnion that auto loan delinquency rate is down to 0.25% which is less than 0.40%. Now the borrowers are serious about making the repayment, and so lenders are willing to offer auto loans. TransUnion also states that there is an increase in both leasing and lending in the non-prime risk sector. It is seen that now lenders have more trust on the borrowers than ever. So, it is easy to secure bad credit auto loan.
Better investors’ trust
It is seen that investors look forward to buying securities constituted of car loans since they are competitively safer. In fact, they tend to fare much better than mortgage home loan. The car has become the necessity for everyone. Major companies in the USA have taken the initiative to issue $10billion sub-prime auto loan relating to ABS. This figure is 20% jump from the last year. This figure proves that lenders will lend money to those having poor credit history. Since offering car financing options is lucrative, lenders will not be reluctant to offer the same.
Tips for securing auto loan when you are in bad credit
If you are with bad credit, you must consider a few tips before taking an auto loan. Choose an efficient but inexpensive automobile. As the depreciation rate of a used car is less, it is wise to opt for the used car. If you are the first time loan borrower, the interest rate may be high. To reduce the rate of interest, look for a loan with shorter loan term.
Bad credit car loan is available easily for the ones in bad credit. To save cost and to gain easy approval for the loan, try financing used car.
About Us: America seems to be fascinated by cars. Owning a personal vehicle is a matter of pride. An auto loan is a way of buying your dream car if you lack finances. The online portal may be utilized to compare the price quotes. A car loan is accessible for almost any kind of buyer.