Is it a Good Time to Get a New Car Loan or Not?

Don’t be surprised if your car loan not getting an attractive finance rate and instead offers rate at the 7 percent to 10 percent range, while your credit score was below 700. Many auto car loan lenders always review your credit history whether you have good credit or not. If you want to have well-positioned to buy, your credit score must above average or more than 700 point in most cases and make sure you make a paid-off trade or a cash down payment.

Since the Wall Street doom and the credit crunch crisis at the end year of 2008 affected an unstable automotive industry, you will never get-in what shoppers have come to expect in the last five years if you decide to buy a new car for next period. The buying landscape has changed.

If your credit score is below average (much below 700), you can’t expect to pay at low interest for your car loan or may not even be able to get a loan. The lenders make sure the buyers not go down to
credit crunch as before and protect their company from bad credit buyers. The most lenders can’t letting you get a 100% financing deals anymore and they still offer down payments of 10 percent to 15 percent from most buyers, including those with better-than-average credit.

You may not expect to find the dealer where you bought your last car before because most of them been an ebb and flow of dealers going out of business, they’re starting to make a big merger among franchise dealers. While that may mean a desperate dealer will be eager to make a good deal now, in the long run fewer dealers means less competition, particularly in smaller cities.

One more which may never you expect in this environment is rising trade-in values. Trade-in values are dropping. Cash-strapped dealers are not keen to take risks on whether they can move that 4-year-old trade-in quickly. The bad news is that buyers won’t have as much bargaining or best option.

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