Subprime Auto Loans Gain in Popularity

In recent years, subprime auto loans have increased in popularity as many Americans find themselves with bruised credit at the same time as they have a need for a new car.  Sometimes a large medical bill pushed people into bankruptcy, or a young college student needs to find a reliable car to get to his or her first job.  No credit, bad credit, whatever the issue, a subprime auto loan just might be the solution.


If you go to a new car dealer, you may find that you do not qualify for financing, or at least not with the great terms of no money down, $139 a month that the television ads spoke about.  Being a recent divorcee or graduating from college often means you have no credit history, and lenders at the dealership are not interested in taking a risk on you.  You also fall into the subprime category if you have lost a job or experienced a reduction in income, run into high medical bills, or just gotten overwhelmed by debt and filed for bankruptcy. You end up not qualifying for a loan, and you feel like you need to slink away and hide.


But here is some encouraging news. When the 2008 recession hit, it created a lot of financial problems for even upper middle-income businesspeople. Those people who now are classed as subprime often have a credit history, and what used to be a decent FICO score.  They make as much as $70,000 a year.  General Motors estimates that 41% of their customers are subprime financers, up 15 million as compared to before the recession. As you can see, you are not alone.


Before heading to the car lot to buy a car, check out opportunities of pre-qualifying for financing, so you can be confident when you arrive and when you pick out the pre-owned car that you love, you will be able to finance it and drive it home that day. You no longer have to try to keep that old car going with another piece of duct tape. Sites like make it easy to apply and get started.  You can apply over the phone or online and with the help of the financial advisor you speak with, you can work out the perfect loan for your needs.  That way, you control the transaction when you go to buy your car, and, no more embarrassment. 


Subprime auto loans have the added benefit of being able to help build or rebuild credit.  If you have had your current job and lived in your house for at least a year, you already have two ways of showing a lender you have some stability. 


You should know that your interest rate will be a bit higher than that found with a prime loan.  The lender in this case wants a little insurance, so he or she charges more. A down payment at the dealership helps you get started, too. The loans are often packaged with bonds that are sold as investments, so the financier can recoup some income this way as well.


So why not contact us and get the process started on a subprime auto loan?  Soon you can be in a reliable vehicle and your self-esteem will be intact.


Subprime Auto Loans