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Auto loan terms continue to loosen for all buyers

The Boston Globe -- For car buyers seeking auto loans, happy days are here again. Banks and auto finance companies are once again welcoming all kinds of customers, even those with less-than-stellar credit.

Low interest rates are making it cheaper for banks to get money, which makes them more willing to lend. The federal funds rate — the rate at which banks lend to each other — is near zero percent, down from 2 percent in summer 2008.

Loans to subprime buyers — buyers with credit scores of 679 or lower — are particularly attractive, since banks can charge higher interest rates. The average interest rate for a deep subprime loan, to someone with a credit score below 550, is 12.9 percent for a new car, compared with 3.2 percent for buyers with the highest scores, according to Experian Automotive.

Yet


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Submitted Jul 20, 2012 By: angel4me
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Auto loan terms continue to loosen for all buyers Back to Topics
REPLIES (newest first) Post a Reply
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honda0105
Champion Author Tallahassee

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Points:2,269,890
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Message Posted: Jul 23, 2012 4:52:50 AM

gonna be another bubble, just like housing. Esp. if another Cash 4 Clunkers is coming down the pipe.
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Soglaos
Champion Author Virginia Beach

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Message Posted: Jul 21, 2012 9:51:13 PM

I understand why
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Wizrd03
Champion Author Illinois

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Message Posted: Jul 21, 2012 8:20:18 AM

Old news
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1WI
All-Star Author Appleton

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Message Posted: Jul 21, 2012 1:30:58 AM

No one wants to lose their wheels.
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Dodge_Me
Champion Author Atlanta

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Message Posted: Jul 20, 2012 11:09:59 PM

Now if only the housing market would step up also
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jrschl
Champion Author Louisville

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Message Posted: Jul 20, 2012 11:06:00 PM

I suppose this can relate to gas prices.
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JamesCalvin
Champion Author Lancaster

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Message Posted: Jul 20, 2012 11:04:37 PM

Who has money to loan????

OH...

I forgot>>>>

They jus printed a new batch of bills!
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Ethan777OH
Veteran Author Ohio

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Message Posted: Jul 20, 2012 11:01:11 PM

cool
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mrbee
Champion Author Little Rock

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Message Posted: Jul 20, 2012 11:00:45 PM

But will they have to be bailed out again?
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NedW
Champion Author Indianapolis

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Message Posted: Jul 20, 2012 10:57:56 PM

Cool! I wonder if I can get a Corvette ZR1 now? Oh. I forgot...Government Motors.
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bra0712
Champion Author Arizona

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Message Posted: Jul 20, 2012 10:57:45 PM

K
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Ethan777OH
Veteran Author Ohio

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Message Posted: Jul 20, 2012 10:56:20 PM

yeah..sure...seeing tons of people with bad credit getting approved...yep,yep...
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Vitobug
Champion Author El Paso

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Message Posted: Jul 20, 2012 10:55:00 PM

ok
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fenster66
Champion Author Pittsburgh

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Message Posted: Jul 20, 2012 10:52:02 PM

seems like deja vu....
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suzmar
Champion Author Texas

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Message Posted: Jul 20, 2012 10:51:28 PM

Okay, isn't this how banks got in trouble with mortgages and student loans?
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Marson
Champion Author Scranton

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Message Posted: Jul 20, 2012 10:49:01 PM

Better keep your score up!
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JENNYHK
Champion Author Chicago

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Message Posted: Jul 20, 2012 10:45:55 PM

ok.
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RAKARWOWSKI
Champion Author Chicago

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Message Posted: Jul 20, 2012 10:43:44 PM

ok.
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abcdMA
Champion Author Worcester

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Message Posted: Jul 20, 2012 10:42:22 PM

will we ever learn?
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drz614
Champion Author Harrisburg

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Message Posted: Jul 20, 2012 10:36:34 PM

ok
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mstearno
Champion Author Dayton

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Message Posted: Jul 20, 2012 10:34:25 PM

great
next recession will prove hurtful
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slayur
Champion Author Chicago

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Message Posted: Jul 20, 2012 10:32:35 PM

lol
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sillywagon
Champion Author New York

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Message Posted: Jul 20, 2012 10:32:23 PM

Sub-prime auto loans? This is not good.
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DarthDadJr
Champion Author Virginia

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Message Posted: Jul 20, 2012 10:28:55 PM

I hope they stay low for one more year...need to get a new van for the wife next year.
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N5EXY
Champion Author Austin

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Message Posted: Jul 20, 2012 10:28:36 PM

This could be worse than the housing loan fiasco. Real estate usually appreciates. Motor vehicles always depreciate rapidly as soon as they are titled and driven away from the dealership. Result, big debt with no equity.
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a_lu_vasile
Champion Author Maryland

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Message Posted: Jul 20, 2012 10:23:48 PM

ok
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REKEY
Champion Author South Carolina

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Message Posted: Jul 20, 2012 10:23:12 PM

Still can't afford one!
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hauler43
Champion Author Oakland

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Message Posted: Jul 20, 2012 10:22:47 PM

OK
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clermont40miles
Champion Author Cincinnati

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Message Posted: Jul 20, 2012 10:19:06 PM

Not a good time to go deep into debt.

Debtor is slave to the lender.

Stay free.
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96sc1
Champion Author El Paso

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Message Posted: Jul 20, 2012 10:18:58 PM

Loan terms are already way to loose.
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walkingtall
Champion Author Toronto

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Message Posted: Jul 20, 2012 10:16:30 PM

Auto loan terms continue to loosen for all buyers and the happy days are here again if you can afford to pay the amount on time.
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Blue48
Champion Author Illinois

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Message Posted: Jul 20, 2012 10:15:54 PM

WHATEVER!
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esq262
Champion Author Asheville

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Message Posted: Jul 20, 2012 10:13:13 PM

Pay cash.
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Tekkersmom57
Champion Author Syracuse

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Message Posted: Jul 20, 2012 10:11:30 PM

Happy days are here again if you can afford to pay the amount on time.
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skybiker
Champion Author South Carolina

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Message Posted: Jul 20, 2012 10:09:32 PM

Insurance prices are still too high....
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Lukus
Champion Author Halifax

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Message Posted: Jul 20, 2012 10:08:34 PM

They want to suck you in and then claim the vehicle back.
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aggietim
Champion Author Fort Worth

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Message Posted: Jul 20, 2012 10:07:25 PM

good
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MahopacJack
Champion Author New York

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Message Posted: Jul 20, 2012 10:04:10 PM

Should prove somewhat helpful but a rosier job outlook would be better.
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AnObserver
Champion Author New Jersey

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Message Posted: Jul 20, 2012 9:58:06 PM

With interest rates at all time lows and the auto industry pushing to recover, the good deals are understandable
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jad1960
Champion Author Gary

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Message Posted: Jul 20, 2012 9:57:07 PM

Whatever
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vulcan96
Champion Author Ohio

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Message Posted: Jul 20, 2012 9:57:03 PM

go for it - get a 40+ mpg car
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knot2swift
Champion Author Calgary

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Message Posted: Jul 20, 2012 9:52:40 PM

I got screwed so bad with my Toyota Carolla. Back in the days before the Depression, I could only get 0% for 36 months.

Nothing like paying off a car in 3 years! $685.15 a month is hard to take even if it is interest free.

3 more idiot payments! Then I'll have a lot of money to waste on the house. The stupid thing in my driveway is such a pain! Come October, NO MORE PAYMENTS ON THE DECOUR IN MY DRIVEWAY!



[Edited by: knot2swift at 7/20/2012 10:55:36 PM EST]
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dong1971
All-Star Author Vancouver

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Message Posted: Jul 20, 2012 9:50:59 PM

I don't care.
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allstar3
Sophomore Author Baton Rouge

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Message Posted: Jul 20, 2012 9:50:19 PM

Won't be long for the next bailout.
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MadTraveler
Champion Author Idaho

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Message Posted: Jul 20, 2012 9:49:53 PM

Nice.
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Spankster85
Champion Author Chicago

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Message Posted: Jul 20, 2012 9:49:02 PM

12.9 percent...kinda rough.
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rcornel
Champion Author San Diego

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Message Posted: Jul 20, 2012 9:47:09 PM

Wow... Ok!?!
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bvrbill
Champion Author Eugene

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Message Posted: Jul 20, 2012 9:46:44 PM

We'll be seeing more loan defaults.
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papa56NC
All-Star Author North Carolina

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Message Posted: Jul 20, 2012 9:45:32 PM

Git-ur-dun then
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judgemobile
Champion Author Ohio

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Joined:Nov 2005
Message Posted: Jul 20, 2012 9:43:49 PM

when interest rates go NEGATIVE, and they pay me money to borrow, then the economy has tanked. Are you listening Geithner and Bernanke ? QE to infinity.
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