Strict Auto Loans Beget Great Car Deals

November 6, 2008

Because of the credit crunch, it’s much harder than it was in previous years to obtain a loan. In fact, for the majority of this century, you could easily apply for a mortgage or car financing without having a substantial down payment or good credit. That has all changed recently though, what with the collapse of the mortgage industry and the ailing woes of the banks that have lost severe amounts of capital because of it.

With so much money lost, banks are closing down on credit lines and locking up opportunities for financing that were otherwise strong possibilities during the real estate bubble period. Because it is much more difficult to secure a loan now, would-be buyers of vehicles are finding it difficult or impossible to purchase a vehicle using credit.

This situation combined with the general weakness of consumer spending has created a very strong buyer’s market. The truth is simple: auto dealers are hurting really badly right now, and they could certainly use any business that they can get. It’s not just the consumers that are desperate and frustrated; those guys on the other side that you’ve known for their sneaky sales tactics basically have no leg to stand on now, and are trying to do what they can to sell vehicles with as many incentives and attractive financing options as possible.

These days, the discounts that can be found at automotive dealerships across the country are all but unprecedented in scope and value. Not many consumers are buying cars these days, and the overall number of sales this year has dropped by a considerable fraction.

If you can apply for an auto loan and get it, then you’re blessed with the opportunity of picking the vehicle you want on your terms. If you have at least 660 credit with the ability to provide a decent down payment, then most larger banks won’t refuse you, and you can work from there to take advantage of this great time to buy a new or used vehicle.