Want to buy a car but unsure of approval because of your bad credit history? Well, you are not alone. Most Americans have at least one problematic transaction on their credit report. It may be anything like a late payment on a credit card or a missed payment on mortgage. Bad credit is very common and so, do not worry about it. You can get guaranteed auto loan approval with bad credit score. Think it is a joke? This article will prove you wrong.
The Odds are in your Favor
Let's take a trip down the memory lane. A couple of years ago “sub-prime” was considered a taboo. After the recessionary debacle of 2009, asset managers swore off “sub-prime loans”.
But, things change quickly in the financial world. Sub-prime loans have become extremely popular today. Half a decade ago, bad credit auto loans presented only 10% of the total car loan market. Today, the number has increased to 33%. Financial Times also mentioned that 10% of today's loans are provided to “deep-sub-prime” borrowers. This means getting your auto loan despite extremely bad credit score is totally viable.
Experian Automotive declared that the market share for non-prime, sub-prime and “deep sub-prime” loans for new vehicles is 34.1% in the first quarter of 2014. It is a jump from 32.8% of the last three months of 2012. This means the same lenders, who once thought sub-prime was a bad omen, are now providing bad credit auto loans in high numbers.
Why are YOU the Preferred Choice?
Lenders, banks, financial companies (including “captive” financing companies of Ford and Toyota, etc.) are attracted to the sub-prime market because of combination of several factors. Here is the list:
Automotive Sector is Important
Since 2009, expenditure on motor vehicle has exceeded other consumer spending. Also, expenditure of motor vehicle accounts for 1% GDP whereas it is responsible for nearly 15% GDP growth during the same period. This shows that auto sector is very important for the economy. And, providing easy access to loan is the best way to help this sector.
Lenders are able to get funding at affordable costs because of low-interest economy. This gives them opportunity to offer auto loans to several people and make huge profits. Interest rates on such auto loan is high which is why, lenders are drawn towards it.
As the interest rates are low, investors want something that can provide high returns. They are fascinated by asset backed securities like car loans because they deliver better than other mortgages. This fact is a huge motivation for lenders to provide bad credit auto loans.
Even though there are talks about the “sub-prime bubble burst”, investors are not worried about it. They believe that Americans love their car so much that they won't let it repossess. They know that it is comparatively easy to make payment on car loans. And, lower delinquency rates have proved these assumptions.
So, these are the reasons why getting guaranteed auto loan approval will be easy for you. The current situation is really beneficial for bad credit buyers because it provides them access to easy loan programs. So, don't wait anymore. Apply online and get approved. The time is now!