Yes, you can still get an auto loan.
The recent media scrutiny hovering around today’s economy had us scratching our collective heads here at CarsDirect. Frozen credit lines were to blame for the eight days of carnage on Wall Street, and would eventually trickle down to Main Street. Or so they said.
The truth of the matter is that this is merely an opinion, and not a fact. Credit lines are not frozen. In fact, we at CarsDirect want to inform shoppers that auto loans are still being offered, and are VERY much available. Granted, some shoppers will find it more difficult than others when applying for an auto loan, but the majority of car shoppers WILL get approved, and the deals offered now are the best that we’ve seen in years.
Now, restrictions and higher rates will apply to those with poor to very poor credit. So if you work part time while in college and have $10,000 in credit card debt, that 2009 Porsche 911 GT3 purchase might be a bit of a stretch. But deals can still be found on other vehicles. Every major automaker is offering some sort of auto financing to accommodate potential buyers. This is a fact.
Banks are still offering the following to prospective car buyers:
- 90 Days to First Payment Available
You read right. This basically means that if you were to receive an auto loan on a new vehicle, the very first payment would be due on the 91st day of the purchase date. So if you were to purchase a 2009 Audi A4 on November 3rd, with a monthly payment of $499, that first $499 payment would be due February 1st, 2009. This is still being offered by banks.
- Banks Are Still Offering $0 Down and 100% Financing
Banks in general are offering zero money down and allowing prospective car buyers who qualify to finance 100% of the cost of a vehicle. Banks are still approving these loans. However, it’s important to note that you need to have better credit than before in order to qualify for $0 down 100% financing.
- Bank Still Willing to Finance Over 100%
Banks will still lend you money for a new car if you happen to be in negative equity. These loans have not disappeared from the marketplace, and do still exist. Check with your local bank. Remember it doesn’t hurt to ask, but it hurts not to know.
- 72-84 Month Financing Still Available
Long term auto loans are still available to those who qualify, which is the majority of consumers. Just note that interest rates for these long-term auto loans to happen to be higher. However, they are still available and have not been put on the shelf.
In summary, it’s important to know the facts of what’s going on and not be swayed by what you might see or hear, especially when what you are seeing or hearing is merely a fabricated opinion and not fact. Auto loans are still available, and the lines of credit that were open yesterday are open today, and will be open in the future as well.