Here’s Why Getting a Bad Credit Car Loan Is Easier than You Think
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% which is much less compared to 0.46%—the fourth quarter result of 2011. These figures have proved that borrowers are more serious and diligent in making regular payments. To read further information about TransUnion, click here.
Upswing in Vehicle Sales
7.3million—that’s the total number of vehicles sold in the first half year of 2012! There has been a 14.8% rise in car sales since last year. This sale can be attributed to many factors like car manufacturers are pushing for car sales. Even 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 incentive programs. Also, easy flow of credit has played a major role.
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-prime car loan related ABS. This is a 20% jump from last year. Detailed information about Santander Consumer USA can be obtained by clicking here.
Are You READY For A Bad Credit Car Loan?
Before getting a bad credit car loan for people with bad credit, you must consider these important points so that you don’t doubt your decision later.
1. Regular payments are extremely necessary to improve your credit score and to avoid it from further deterioration. If you make on-time payments, you will get better interest rates next time.
2. 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, don’t 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.
3. It’s important that you choose an inexpensive yet efficient automobile. Buying used vehicles the most affordable option with you. It is a perfect choice because its depreciation rate is lower than new cars. While choosing a car, don’t forget to check its title. Get it inspected from your trusted mechanic.
4. If this is your first loan after your score nosedived, you must be ready to pay a higher interest rate.
5. Choose a shorter auto loan term so that you don’t increase any chance of an upside down auto loan.
These important cues are very needed in reaching your good decision. You must understand that bad credit auto loans are easily available but you can make them more comfortable by remembering these points. To read further information about the Strategies to Renew Your Hope of Getting Bad Credit Car Loans, click at http://www.bennettsperformanceinc.com/strategies-renew-hope-bad-credit-car-loans/