Many Americans were worried that the debt ceiling crisis was going to wreak havoc on the U.S. economy, especially when it came to loans and interest rates for the everyday citizen. However, the Obama Administration came up with a solution in the nick of time, and it looks as though people who wanted to buy vehicles with bad credit car loans are in luck, but they might have been fine anyway.
"All market factors suggest that credit will remain available, that interest rates will remain stable and that incentives may help keep car prices low in the immediate future," Edmunds' chief economist Lacey Plache told CBS Money Watch.
Still, drivers who are hoping to buy a car with an auto loan should get the ball rolling as soon as possible to get the best rates on their loans. The Wall Street Journal states that loan rates are dependant on the U.S. Treasury, and while the rates have not gone up significantly yet, America's new, lower credit rating will eventually pull consumer loan rates higher. Last week, the average five-year new-car loan rate rose from 5.44 percent to 5.6 percent.
Drivers should consider applying for car loans now, even if they are not quite ready to buy, so they can lock in lower interest rates. Going to a dealership with a loan already in place may help motorists avoid getting talked into spending more money than they planned on. It can also work to the driver's advantage as they are able to pay up front because the loan is already secured, which could even possibly get the driver a better deal on the car.
Getting a loan before picking out a car can also help drivers find the right vehicle for their price range. They won't need to figure out monthly payments based on the price of the car, as those details would have been worked out when the loan was obtained. This allows them to focus more freely on the car they want in their price range. It can also help consumers determine if the dealership is able to offer them a better interest rate than they already have, according to Edmunds.