Equifax has released their latest news on increases in auto financing for people with bad credit history. Big increases in industry lending for poor credit auto loans are partly due to the improvement of the overall economy but may also be accredited to the increase of consistent loan payments with zero down car loans.
Here’s a deeper look at the report:
The report, which specifically addressed car loans, made the following points:
• The most recent data shows that auto loans originated between January-November 2012 totaled $387.7 billion, a six-year high and representing nearly 46% of total consumer credit originated ($825 billion) for that same time.
• Total number of new auto loans originated between January-November 2012 was 19.9 million, an increase of more than 11% from January-November 2011 and matching a six-year high.
• New auto loans funded in November 2012 by banks, savings and loans or credit unions increased nearly 13% over November 2011 totals (749,800 to 857,300).
• For January-November 2012, auto lending to subprime borrowers (origination risk scores less than 640) has increased more than 18% year-over-year, from 5.1 million to 6.1 million
Loan Applicants Future Does Not Look So Bleak After All
We’ve noticed an increased curve of approval for all applicants across the board. However, we do encourage our auto applicants to deal smartly with a lender. Make sure the loan you’re getting is for a car you can afford. It’s very important to follow these auto loan tips before you purchase a car. Getting a loan from a bad lender will cost you thousands of dollars in unnecessary interest payments.