The impact of longer-lasting cars on automotive financing
Posted on Monday, May 16, 2016 at 2:02:29 PM
Cars are staying on the road for longer periods of time, and resale values are similarly improving as time goes on. This is having a profound impact on the automotive financing market.
More options are available for everyone - including dealers. Financing options are expanding because more lenders are getting into the used car financing market with a specific focus on buyer credit and repayment ability as opposed to the year, make, model or mileage of a vehicle.
Dealers are there to move metal for profit, and lenders are helping them to achieve sales goals while supporting consumers in need of a vehicle.
If a customer needs or wants to acquire financing, it will be available. In some instances, rates might be higher, but the savings achieved on the used car compared to a new one will likely offset those hikes. At the same time, rates are overwhelmingly steady and aggressive across the board. The main consideration of rate and term is now more closely correlated with the borrower's financial history and year of the vehicle.
The newer the vehicle and better the credit, the lower the rates - which is the way it should be.
Happy and safe driving!