The auto industry is quickly recovering from the crippling effects of the recession, and one of the key components in the turnaround is the increase in the availability of car loans.<\/p>\n
According to the New York Times, new car sales rose 11.4 percent in 2010, with used cars similarly seeing strong sales. The first two months of 2011 have been even stronger for dealers and automakers.<\/p>\n
One of the most marked differences between 2010 and 2009 is the availability of auto loans, especially to buyers with a bad credit history. CNW Market Research data shows that 859,000 vehicles were sold to subprime borrowers in 2010, which represented a 60 percent increase over 2009, when lenders were much less willing to take risks on borrowers.<\/p>\n
Now, with banks and dealers in a stronger financial position, many lenders are allowing for bad credit loans again. And the availability of loans is in turn facilitating transacations at the dealership.<\/p>\n
"We had people coming to our showrooms that wanted to buy, but we couldn't get them financed," Michael Maroone, CEO of the dealership chain AutoNation told the news source. "We are now getting them the financing."<\/p>\n