After a long time, the bad credit borrowers are seriously going to enjoy this situation as they are going to have the benefit of having a new car loan despite their poor credit scores. In the recent years, if you went to the dealer with a score of 500, the dealer will laugh out as they assume you to be non-viable in paying out the monthly bills.
As the Federal Reserve went out to keep their promise and have lowered the interest rates, it is turning easier for the bad credit people to borrow a loan.
More and more marketers are finding huge chances in lending out cheap car loan to subprime borrowers. They are taking advantage of this new thing and jumping on the trend to make the automobile market fertile.
Dealers and the online auto financing companies have realized that if a borrower defaults on the loan it is easier to repossess their car instead their home and, therefore, have opted to take a big loss as the cars have depreciating value.
If the owner defaults, then dealer can take the vehicles and can sell it at an auction, often time it is much less than the outstanding balance of the loan. This makes them easier to get number of customers as most maintain their payment.