subject: Car Loan Lenders in Boston [print this page] Car Loan Lenders in Boston Car Loan Lenders in Boston
According to Experian:
Car loans for new cars to consumers with non-prime credit, credit scores between 620 and 679, increased to 10.86% in third quarter, up from 9.79% in 2009
Car loans for sub prime car buyers, credit scores between 550 and 619, increased to 6.61% in third quarter, up from 5.66% in 2009
Car loans for people with rally bad credit, credit scores 550 or less, increased to 1.59% in third quarter, up from 1.46% in 2009
Experian also reports that 30 and 60 day delinquencies are down, meaning that more and more consumers are paying their debts and paying them on time. The 30 day delinquency dropped to 2.99%, down from 3.27%. The 60 day delinquencies dropped to .77%, down from .93% in the third quarter which is a decline of 17.39%.
Customers also borrowed more in the third quarter, with an average new car auto loan of $25,273, up $2,530 from a year ago. The average used car loan was $16,706, up $977 from a year ago.
Subprime Car Loans
According to the third quarter analysis, there are strong signs that bad credit no credit car loans are primed to dominate auto sales for years to come. Consumers still believe that it's near impossible to acquire an auto loan because of their credit situation, but it's up to the dealerships and the car loan lending institutions to educate them about the various options available to them now.
This is great news for shoppers that fall into the less than perfect credit category who are buying a car with bad credit though! However, shoppers with less than perfect credit will have to pay a higher interest rate than shoppers with credit scores higher than 680.
Today, while nearly 30% of new car dealers experiment in subprime, less than 10% of new car dealers offer deep subprime car loans. So if you have a really bad credit score (one less than 550) you should choose a dealership that offers second chance loans carefully. If you don't not only will you waste time, but you may further hurt your credit score.
When you apply for a subprime car loan at a new car dealership that doesn't specialize in subprime financing, the finance manager will generally send out your credit application to every car loan lender available. On the other hand if you apply with a new car dealer that does specialize in subprime car loans they will then analyze your credit application and credit report, as well as your available cash down payment, and select the car loan lender most likely to approve your request.
For more information on auto loans in Boston, click here.
