Barely a year ago, even some of the most affluent, credit-worthy customers were being turned away when they applied for automotive loans – one reason new car sales slumped to a decades-low 8.6 million for 2009. But things are starting to turn in a positive direction, according to a new study by research firm Experian Automotive.
Not only have the spigots re-opened for buyers with top-tier credit scores, but even the “credit challenged” are beginning to find ways to land loans. Significantly, the loosening of credit is matched by a sharp decline in both loan defaults and delinquencies, according to Experian’s analysis of third-quarter automotive lending.
“Easier access to loans is a positive sign for the auto industry, as tighter loan criteria during the economic downturn represented a significant challenge for automotive manufacturers and their retail networks,” said Scott Waldron, president of Experian Automotive. “Making it easier for consumers to obtain credit can only help the auto industry moving forward.”