Getting an auto loan is just as hard

By Michael Boshnack

We have all heard how difficult it is to secure a home loan given the economic situation that is occurring in our county. Securing a car loan is not any easier. The sub prime borrowers have been completely shut out of the new car buying market. My intuition was that with the massive drop in new car purchases, auto dealers would still be aggressive with their financing to try to increase their car sales, the opposite has been happening. Like the home mortgage market borrowers are being turned away unless they have had perfect credit and a steady income stream currently.

Mike Spector recommends going to the auto companies that are more financially stable right now to secure a loan. This is maximizing ones chance of securing a loan as these companies can be slightly more flexible in the risk of the loans they give out to borrowers. Used car loans seem to be almost as difficult as new car loans, as these institutions rely even more than car dealers that everyone will repay their loans because they deal with less volume.

In order to secure an auto loan during this time consumers must be willing to put down higher down payments to entice the lenders to give them a suitable loan.


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