Tag Archives: subprime auto loan

Low Monthly Car Payments Drive Subprime Credit Auto Sales

ID-10073066Going into summer 2013, banks and lenders are offering more options to subprime credit auto buyers including lower monthly payments and longer auto loan lengths.

According to Experian, the average monthly payment on a new auto loan in 2013 is $459, and new car buyers are extending the length of their loans as long as 84 months. 19.5 percent, or nearly 1 in 5 new car buyers, are opting for 73 to 84 month auto loans.

The obvious downside to a longer auto loan is that it will cost more in interest than a higher monthly payment and a shorter loan length. It is simple math, and there is no way around that. Still, a longer auto length is often a good option for consumers who need a lower monthly payment. Plus, they can always make higher payments and pay off the loan quicker if their financial situation changes and they have more money to put towards the loan.

Are you looking to buy a new or used car with poor credit? Do you know what payment and loan options are available to you? Approved Loan Store wants to help YOU get the car you want at terms you can afford, and we are ready to help you today! Get started right now by filling out our secure online auto loan application here, and for more auto news and buying tips, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!

Image courtesy of Vichaya Kiatying-Angsulee / FreeDigitalPhotos.net

TransUnion: One-Third of Approved Auto Loans Are Subprime

With almost a third of all auto loans going to subprime buyers, it has never been easier to get an auto loan.

Figures from Experian and TransUnion, two of the 3 big credit bureaus, show that more people are getting approved for auto loans, and 32 percent of those auto loans are going to subprime borrowers. All these approvals for subprime borrowers have surprisingly not had an effect on the number of buyers who are delinquent 60 days or more on their payments. If anything, the rate has actually gone down from .94 percent in 2009 to .74 percent in 2012.

Industry insiders are attributing the low rate of delinquencies to consumers making their auto payments a higher priority. For many of these subprime borrowers, this is more than just buying a car. This is also a chance to rebuild their credit history and improve their credit score.

At Approved Loan Store, we work with customers every day who have a wide variety of credit standings. Some have stellar credit while others never established a credit history or they are struggling with subprime credit. We work with them to get a great car at terms they can afford, and we can do the same for you too!

Are you ready to get into a new or used car today? Get started by filling out our secure online auto loan application here, and for more auto news and buying tips, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

JPMorgan Chase Names New Head of Auto Finance, Promises More Subprime Options

In recent years, JPMorgan Chase & Co has lagged behind the competition when it comes to auto finance, but they are hoping new leadership will turn their luck around.

JPMorgan Chase announced that Thasunda Brown Duckett would be heading up their auto financing, taking over for Marc Sheinbaum. Looking at the numbers, she has a lot of work ahead of her. According to Experian, JPMorgan Chase is the fourth biggest auto lender despite being the biggest bank in the United States, and with new leadership, it is clear that Chase wants to change that.

While Duckett has not set any plans in stone, she has hinted at opening up auto loans to customers with lower scores, saying there are “opportunities for us to expand that credit box to be able to help more customers.” Many of their competitors have already taken this step which might account for JPMorgan Chase trailing in auto loans. This change could give more options for car buyers with subprime credit to get a car and reestablish their credit history, and it could give JPMorgan Chase to be competitive in auto loans again.

If you are looking for a new or used car, Approved Loan Store wants to help YOU! Good credit, bad credit, or no credit, we will work with you to get the best terms possible on the car you’ve been looking for! Get started today by filling out our secure online auto loan application here, and for more auto news and buying tip, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!