By Chimezirim Chinecherem Odimba
There was a time not so long ago when just about anyone could get a car financed to them. Those were the days! Then something happened that caused just about all loans to come to a screeching halt. This includes all loans but the hardest hit were home and auto loans. The credit market freeze has made it nearly impossible to find money to lend. Even people with really good credit are lucky if they can get a loan. People that are considered to be sub prime borrowers are pretty much out of luck!
Lending institutions are more likely to decline loans in this current economic state. There is a better chance of approval for those with good credit if you look at Toyota and BMW as they are still considered to be healthy lenders. If your credit is less than perfect you will certainly want to pay down some of your debt before approaching any lenders. You may also have better odds if you buy used and spend less.
Even those that would normally walk into a bank or credit union and be automatically approved are finding that most loans are being declined and if they are by chance approved then there is a lot more red tape to go through than ever before. Plus, the interest rates will likely be considerably higher too. Some with flawless credit and a decent income are paying just shy of 13% interest. These days it is all about managing risk.
Consider that before the credit market freeze, about 80% of all car financing was approved and that number has plummeted to around 25%. Those that are lending are offering less so borrowers should expect to put a sizeable down payment when financing a car. It is not uncommon in many cases for lenders to require up to 20% down. The credit market freeze has brought forth further restrictions too such as more documentation prior to lending which makes it harder for many to qualify.
The amount of time to pay off the loan has also changed. Most used car loans can not be extended farther than 72 months and 84 months for new car loans. This also holds true for those that lease vehicles as well. Even big shot car manufacturers like Chrysler have opted right out of all leasing options. Times are tough but the good news is if you are able to pay cash then you will likely get a great rock bottom price now!
But how about getting your auto loan approved in about 24 hours?
Get approved for your auto loan in minutes at Auto Loans Approval In Minutes [http://getyourautoloannow.com]. Or in need of quick cash? Get it here: Make Today Your Own PayDay [http://getyourpaydayloannow.com] Chimezirim Odimba is a finance expert.
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