Interest Rates Low Into the New Year

Talk of the economy of almost completely inescapable these days.  Things seem to be taking a turn for the better however, with the auto industry having very positive news about their sales upswing in 2011.  Unemployment numbers just came out the other day, showing at 8.3%, the lowest in three years. Money is starting to get back in people’s pockets and for the person looking to purchase a vehicle the lenders are expected to give some great rates in 2012.

Interest rates have seen a steep drop of late.  For example, a 60 month- loan given in November of 2008 to someone with excellent credit would be looking at paying an annual percentage rate of 6.54 percent.  That same loan being made today would be at 3.73 percent.

Melinda Zabritski, the director of automotive credit for Experian, has an explanation.  She believes that consumers are no longer making impulse buys but are rather being more cautious with their money and planning out a car purchase in advance.
That’s not to say that just because you have bad credit means that you’ll get guaranteed an excellent rate.  For subprime borrowers (people with credit scores of 619 and below) they can expect to have to provide a 20 percent down payment.  Due to this, Experian’s Zabritski explains that these customers should be looking more at used cars where there are better loan opportunities.  According to Experian’s data, the used car may have a higher interest rate but this is offset by the lower cost of the vehicle along with a better chance of being approved.

There are some basics people need to know before purchasing a car.  These range from setting up a budget, knowing your credit score by doing a credit check, and being prepared to make a larger down payment.  The signs are there with the economy with the recent turn for the better.  People with low credit are still having a tough time with auto loans, but it’s starting to look more optimistic.

2012 is going to be the year to get people into the car they want.  This high demand from consumers with challenged credit means that there is no better time to sign up with Special Finance Group’s Complete Special Finance Solution.  You can learn more about the program here and go to http://www.specialfinancegroup.com to get more information.  Don’t forget to like them on Facebook to stay up to date on all the latest news in the industry.

American Auto Makers See Year-End Boost

As 2011 closed out and 2012 began, it was clear that the end is not near for Detroit automakers.

In 2011, sales for new cars, trucks, and crossovers jumped 10.2 percent, and Chrysler Group alone had 37 percent sales increase compared to December 2010. Chrysler wasn’t the only domestic auto company to see big sales, though. Ford and GM also posted high sales numbers for 2011 with a sales increase of 17 percent and 14 percent respectively.

The jump in sales can be attributed to two main factors. First, domestic auto makers have been stepping up their game and making their newer models even better. Chrysler Group and their Chrysler, Jeep, Dodge, and Ram brands are great examples. Second, banks are becoming far more aggressive with their special finance programs. They want to help the millions of Americans who have challenged credit to get into a car. The trouble is that if someone has damaged credit, there is no way to rebuild it unless someone gives them the chance. Unless they have a credit card to make payments on or a car to pay off, there is no way to build up a positive payment history.

With the high demand for vehicles and millions of consumers with challenged credit, there is no better time to sign up with Special Finance Group’s Complete Special Finance Solution. Learn more about the program here and go to http://www.specialfinancegroup.com to find out what Special Finance Group could do for your auto dealership. You can also follow us on Facebook here.

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