Vehicle loans are now easier to get

Article by Christian A., 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:

Comments

Recommended

BMW has given the 2018 1-Series a facelift, and they have just released a ton of new photos and a couple of videos to show us what it’s got. Nevertheless,...
by - July 24, 2017
When Chevrolet came out with the 2018 Equinox last September, the facelifted model was offered in a diesel option for the first time, plus it weighed much less at 400...
by - July 23, 2017
If you are a huge fan of the hardcore GTS version, you probably know that the closest you could get to that model is the upgraded model of the M4...
by - July 23, 2017
Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries