At the height, or depth depending on your perspective, of the financial crisis, it became pretty difficult for the average consumer to get a car loan. ‘The credit markets froze up like the aluminum engine block of a ’74 Vega,’ according to James Appleton, president of the New Jersey Coalition of Automotive Retailers. Luckily, there is a little more grease on the runners right now and buyers are finding loans easier to come by.
The credit is not just trickling through for great credit scores. Second chance auto loans increased by 28.5% in March, 2011. Before the financial troubles that started in 2008, car loans were easier to get. At that time sub-prime loans made up a large portion of the market, according to economist Joel Naroff, president of Naroff Economic Advisers. 2008 marked the beginning of the longest and deepest recession since the end of World War II and second-chance loans were the first to be cut.
As the financial downturn recedes, jobs return and credit loosens. An increase in available credit will always drive new car sales. It also helps used car sales. The people hit hardest by the economy may be needing those sub-prime loans to return to their pre-2008 credit score. It seems that help from the banks may finally be on its way.