Vehicle loans are now easier to get

Article by Christian Andrei, on May 25, 2011

If you need further proof that the U.S. auto industry is recovering, here’s one more. It’s now easier to get a vehicle loan. Banks and other loan providers raised lending in the subprime market by 11.1% in the first quarter of 2011 compared to the same period in 2010.

New data from Experian Automotive show that credit-challenged consumers benefited as auto lenders loosened up and approved more new-vehicle loans. In 2011, job growth continued to go up and interest rates had dropped.

It can be recalled that in the 2008 banking crisis, U.S. lenders clamped down on credit to get risky loans off their balance sheets. In recent months, U.S. auto retailers have complained that there were still some difficulties getting some customer loans approved.

Melinda Zabritski, director of automotive credit at Experian, said that lenders have started to return to the market and they have displayed more confidence about customers they’d have considered too risky a year ago.

He added that the outlook is definitely improving. These new data are from Experian Automotive, a credit-reporting service that gathers credit and financial data.

Experian said that in the first quarter, the average consumer credit score on auto loans was 766 points, dropping from an average score of 776 in the same period in 2010. The 2011 average is the lowest since the economic collapse in the last quarter of 2008.

If you liked the article, share on:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016