The Credit Crunch

Are you hesitating to apply for auto credit due to the credit crunch?  What are your chances of getting guaranteed credit these days?  Mainstream thinking says that you don’t have a slim chance of getting approved for auto funding unless you have a six digit income and perfect credit.

According to many financial experts, credit is available, and much of the problem is related to the consumer’s lack of credit confidence and the fact that many consumers have made a decision not to make big purchases right now because of the economy.  Even though lending institutions have tightened up, in fact this is one of the best times in history to purchase a new car because of all of the buyer incentives out there.

The big players in auto lending are reporting that they do have the means to loan money to credit worthy consumers.  Dealers and auto manufacturers are desperate for sales and  they are saying that financing is available for credit worthy buyers.

Below are some tips to keep in mind when you do decide to start the process of applying for an auto loan.

• Be aware that the leasing market is very limited right now industry wide

• If your credit is low, consider buying a used car instead of a new one, you are more likely to qualify for a better finance rate.

• Certified vehicles (used cars that have been reconditioned and are sold with manufacturers’ warranty) may be a good option if you don’t qualify for a loan on a new car

• If you have your heart set on getting a new vehicle, don’t let rumors of a freeze in lending stop you from pursuing your dream, hundreds of lenders are approving loans and experts say even applicants that have slightly low credit can qualify