Young drivers may have increased access to auto loans

Young drivers may have increased access to auto loansWhen credit was tight, both consumers with bad credit history and young drivers may have faced increased difficulty in obtaining an auto loan. Young consumers typically do not have a substantial credit history, making them appear risky to lenders and making lenders hesitant to extend credit.

As credit gradually expands, however, younger drivers may find it easier to get behind the wheel of the car they desire, according to the Detroit Free Press. The increased auto sales to young consumers should go a long way to boosting car sales overall, according to some experts.

"I expect vehicle sales to steadily improve in part due to a thawing in the availability of auto loan credit," said Mark Zandi, chief economist at Moody's Analytics.

Kurt Rankin, economist for PNC Financial Services Group, said that drivers with bad credit history are obtaining car financing more easily in recent months, and that this has contributed to the growth in auto sales.

Young drivers who found their auto loan applications denied during the recession may want to research car loans for bad credit and apply again, since their chances of getting approved may increase as credit expands. 

Related Post