Have you been putting off applying for a car loan because the banks have tightened their requirements? Do you think your credit is not good enough to get approved for that new Nissan that you have been wanting? If so, put those thoughts aside because getting an auto loan has just gotten a little bit easier.
The government now has a program in which auto loans are guaranteed because they are sold to investors. This means that banks are being less stingy with their money and more consumers are hearing those four glorious words – “You have been approved.” But that’s not even all of the good news! In addition to relaxing their high standards recently, lending institutions are charging consumers less for their loans with lower interest rates. This is good news for the auto industry which has certainly seen better days than in the last few years.
During the third quarter last year, lending institutions increased the number of loans they gave out by more than five percent when compared to the second quarter. Those numbers are reported by Experian Automotive. The month of December was even better for car buyers with average credit. Part of the reason for December being a good month is also because dealers are trying to lessen their inventory in time for the new year, but it was still a silver lining that we can all appreciate.
So get down to your Nissan dealers and apply for that auto loan if you’ve been putting it off. With the relaxed standards, you may just hear those four coveted words – “You have been approved!”
