Used cars can be expensive, but recent good news regarding auto loans may make purchases easier for all kinds of buyers. Experian Automotive released its latest State of Automotive Finance Market report, and the data collected showed that more people are taking out car loans and fewer are defaulting on them. <\/p>\n
According to the report, 30-day auto loan delinquencies decreased 3.4 percent during the third quarter of 2013 compared to the same time last year. This drop comes as loan balances grow. Outstanding balances jumped by $103 billion in the past year, bringing the total amount of debt to be repaid to $782.9 billion. Although that may seem like a large sum, it is indicative of more individuals being granted larger loans, which is a good sign for subprime buyers who may have struggled with their finances in the past. <\/p>\n
"The combination of higher loan balances and relatively flat loan delinquencies is good news for everyone connected to the automotive industry, including consumers, lenders, retailers and manufacturers," said Melinda Zabritski, a senior director at Experian Automotive. "The availability of credit, combined with consumers' continued strong performance repaying their loans, has a positive spiral effect. It allows lenders to slowly but surely take on additional risk while providing more access to loans and paving the way for higher auto sales." <\/p>\n
With loans becoming more obtainable for all individuals, more people may begin looking into the possibility of investing in used cars. <\/p>\n