Aside from automakers coming up with different incentives to attract consumers into their dealerships, car buyers will have another reason that may convince them to buy a new car. According to the statistics gathered by CNW Marketing Research of Brandon, Ore., car-loan approval rates have improved this year compared to the last couple of years.
In June, loan approval rates for consumers with excellent credit ratings reached 90%, as compared to 70% in late 2008. These consumers benefit from the coveted zero-percent financing deals.
For majority of car buyers with average to good credit scores (620 to 750), the loan approval rate has improved by 12%.
Moreover, the approval rates for sub-prime borrowers have even increased to 9%, from just 5% last year. But even with the extra precaution, it’s clear that more people are being granted loans that they wouldn’t have gotten a year ago.
Based on current trends, it’s evident that lenders are finding more confidence in the market. This increased confidence reflects in the average interest rates for auto-loans. According to Bankrate.com, the average interest rates for four-year auto loans have dropped to 6.3%, from 7.2% last year.
Aside from more reasonable auto loan interest rates, lenders are also expanding the number of dealers they work with. This provides more options for car buyers looking to secure the most reasonable financing deals.
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