Today, it is a lot easier to go home with a new or used auto. This is because there are several financing options for you to choose from. Studies show that the auto lending industry is among the first to recover after the recession. Hence, the auto lending industry is noted to be financing more vehicle purchases.
There are many ways that you can get auto loans. You can go to your local banks to submit your application or you can let your dealership apply you to a financing firm that they partner with. If you have good credit score, sky’s the limit when it comes to your options. The problem is it is tougher to get a favorable credit score these days. With the economy just coming out from recession, a good number of the Americans may have not-so-desirable scores. So even if the auto lending industry is back on track, borrowers aren’t yet.
According to the USNews, you should apply to several auto lenders in order to find the perfect car loan for you. USNews emphasizes that looking for the best car loan is just like looking for a job. You need to explore your options in order understand what some offer that others do not have.
On Buying And Financing New Autos
When you’re buying a new car and you intend to have it financed, Money CNN advises that you ask your dealership for help. This is because dealerships get better deals with lenders since the earlier can personally attest to your credibility to pay. Dealerships have your financial information and some of them would even go to the lengths of pulling up your credit score. Now all that they need to do is to forward your information to the dealer that they partner with.
However, if you have a bad credit score, you would probably do better looking for bad credit loans on your own. The fact that the auto lending industry has bounced back is best compliment by the dramatic increase in third party lenders offering car loans too.
The Auto Loan Industry And Its Impact To Employment
With the livelier auto loan market, affected companies have begun to hire new employees. As of 2011, the Fort-Worth based GM Financial has opened its doors to not less than 500 employees company-wide. An addition of 1,600 area employees have also been hired to fulfill the company’s overwhelming customer service needs.
According to their Chief Executive Officer, Dan Berce, the growth is to be expected for the next few years as the economy makes it way towards stability. In only six months since its re-strengthening, GM Financial has already released approximately $2.5 billion in auto loans and $500 million in leases. However, the money was only given to those with only a few issues in their credit score.
The billions of dollars in auto loans contribute to the increase of sales revenue and market gain in all auto companies in the United States. Further, the company’s profit has allowed it to expand and explore other services like leasing.
The better auto lending market has also helped dealerships across the country. This is because dealers can now offer better options depending on the credit score of the buyer. A person who wants to buy a car and has a good credit score is referred to auto lending giants like GM. Meanwhile, a buyer who has a low credit score is instantly referred to lenders that provide bad credit loans.
So if you intend to purchase an auto, it is best to do so while the market of auto lending is still good. Economists believe that although the auto lending industry has fully recovered, if the other components of the economy won’t, auto lending might still be pulled back down.