Second Chance Auto Loans
The Standards and Poor’s calculation tells us that in 2005 -2006, the number of subprime loans was up 180%. The figures continued in 2007 and are expected to continue into 2008 and beyond. Therefore, lenders are aware that in order to stay afloat, they will have to lower their expectations. Credit scores in the 700 range are few and far between, leaving a very small market of what was once considered credit worthy. So in order to continue to do business and grow, they need to dip into the larger market of those who have fallen below the mark. This is where the majority of people are and therefore where the largest portion of their business will come from.
Only 49% of the market was captured by American automakers. This can spell trouble for our big 3 automakers (Ford, GM, Chrysler) when all indications predict even more of the market moving toward foreign automakers.
How will you benefit?
Dealers will consider all credit terms in order to not risk losing market shares. Circumstances such as not being employed or having a recent repossession can prevent you from qualifying, but low fico scores will not hold you back.
Since the market of “risky borrowers” makes up such a large portion of the market, lenders have created many viable loans to suit these candidates. They are much more willing to compete for your business.
So if you are in need of a vehicle, or want something better, don’t let your bad credit issues stop you - click on the link below for a selection of lenders with terms to meet your needs.