Leasing Deals Are More Difficult To Come By

January 24, 2009

The changes the economy has been experiencing are not ideal, but people are managing to do what they can in the face of a recession. Unfortunately, many things have changed in terms of financing to make it harder for people to get what they need.

This is especially true in regards to automobiles. It’s harder to get a vehicle to lease now that the Automotive Big Three have started pulling back from offering financing opportunities to prospective buyers.

The reason for this is because the lease financing companies are losing out in a big way due to the falling value of trucks and SUVs. The vehicles that fall in this category that are coming off lease are hitting their financing companies hard with a plummeting residual value. In fact, the overall value of trucks and SUVs has fallen by at least 20% in recent time.

The impact this has on consumers can’t be ignored. If a person is fortunate enough to have excellent credit, then finding a good deal on a leased vehicle is still highly possible. Otherwise, people with bad credit are going to face difficulty securing a loan, and if they manage to find financing opportunities, they’re going to have to deal with very high payments.

Another change is that the tremendous deals for low payments that the Big Three have offered in the past are going to disappear for the time being. Low monthly payments are essentially out of the question unless an individual possesses a credit score that is 700 or higher.

It’s not anybody’s secret that the American automotive industry is facing some seriously challenging times, but this doesn’t mean that consumers are completely out of luck when it comes to vehicle financing. There are still many good deals out there, and more are emerging now that it’s a buyer’s market. However, it’s going to take hard work and a keen eye in order to take advantage of the automotive market and car loans during a shaky economy.