Relaxed credit standards are making it easier for consumers to get car loans, which are in turn driving car sales and stimulating the auto industry, according to data from CNW Research.
CNW revealed that buyers with bad credit accounted for 9.9 percent of new car sales in September, the highest total since February of 2008. Through the first nine months of the year, the average is at 6.8 percent, up from 5.7 percent, suggesting that lending institutions have relaxed their standards.
It’s a trend that Ellen Hughes-Cromwick, chief economist for Ford, agrees with. She told Bloomberg that “credit has begun to ease for automotive in general. We should see consumer credit begin to evidence some recovery, but it is a slow go.”
As automakers slowly recover from the recession, it is expected that the relaxing of standards will lead to increased sales, according to the news source.
That means some leeway for buyers with bad credit in terms of obtaining a suitable loan. Even if a buyer was turned down in the past, the changing economic tides mean that they may be pre-approved now. Interested buyers can easily apply online to get several quotes quickly and easily.