As the dust continues to settle from the economic crisis, the automotive financing climate has begun to make its recovery. Toward the end of last year, lenders began offering more loans to car buyers, even those with average of below-average credit histories, Auto News reports.
Many industry experts believe that the lenders are approving more loan applications because credit markets have opened up substantially, which has improved lenders’ liquidity.
Late last year, GMAC, the principal lender for General Motors and Chrysler, received nearly $1 billion after selling auto loan securities, money that they have used to write new loans.
Tony Boutelle, CEO of Credit Union Direct Lending, told Auto Week that lenders are now willing to consider prospective car buyers who have had a foreclosure but still have steady income.
“In the past, if you have a foreclosure on your credit report, forget about buying a car for seven years,” he said. But now, lenders “are loosening up to at least make offers to those individuals.”
If you have good credit or bad credit, New Jersey State Auto Auction has the financing resources to get you approved.
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