Car Loan Business Continue to Profit
Car Loan Business Continue to Profit
Americans with spotless credit are still the only ones who get better deals in terms of mortgages loans in the United States. All throughout the country, banks and financial institutions are still being up tight with credit loans to ordinary customers. Even small business establishments are having problems with loans because credit card offers are limited.
However, even if getting a mortgage loan for business is difficult, it is surprisingly easy to borrow money to buy a car. Bank loans for automobile loans have accumulated to $47.5 billion in just the first three months of this year. This is the highest mark it has hit in the past 7 years this is according to Equifax. Not only that, the interest rates are getting even cheaper every month that even citizens with bad or poor credit can avail auto loans.
The reason to why the automobile trade industry is good compared to other loan industries is that many American citizens are trading in their old cars and trucks, thus the industry has sold a total of 7.3 million of the items in just the first half of this year.
There is another reason that makes this industry healthy and progressive, that is the number of investors and private-equity businesses that are fast to purchase car loan securities, because they see the business as profitable and financially worthwhile.
GM Financial and Santander Consumer USA, the country’s largest automobile lenders have given $10 billion of their subprime auto loans to investors. This is 20 percent more than they have given off last year.
It may be puzzling and surprising that Americans would rather pour investments in cars rather than homes. But according to analysis, more Americans are willing to default on their car loans than their house. It is easier to repossess a car than to sell it to someone else, since the price for second hand cars are fairly high.
Related posts on loans for people with bad credit:
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- Want a Car? Bad Credit Won’t Stand on Your Way Want a Car? Bad Credit Won’t Stand on Your Way When you have bad credit, then you’re probably scratching your head right now, trying to figure out how you can get an automobile loan. But to worry is really not what…...
- Getting a New Car Despite Low Credit Getting a New Car Despite Low Credit Getting your hands on a brand new car is now easier if you are an auto manufacturer’s employee or if you have relatives or friends that do. According to Auto Credit Express, there are…...
- New Auto Loan Modification Schemes New Auto Loan Modification Schemes Another scheme is surfacing the business industry today. It is about automobile loan modification companies that promise consumers that they would take care of their automobile loans for a large price. Sadly, many Americans have fallen into the…...
Filed under: auto loans • car loan • mortgage loans
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