Amount of consumers with poor credit scores to secure auto loans in Q3 rises
Posted on Friday, December 7, 2012 at 3:51:46 PM
Prior to applying for auto financing, it's important for a consumer to ensure their credit is in the best possible shape. However, some people can rest assured knowing the average credit score required for auto loans declined in the third quarter.
During the three-month period, the average consumer credit score for auto financing was 749, a decline from 755 a year earlier, according to a report Experian.
"With leasing showing a continued upward trend, and lenders increasing their appetite for risk, consumers were in a good position to obtain a vehicle during Q3," said Melinda Zabritski, director of automotive credit at Experian Automotive.
Meanwhile, the average size of used car loans expanded to $17,577 in the third quarter, up from $17,359 average recorded between April and June. This could indicate that more consumers are comfortable taking on debt.
The report also indicated that consumers opted for certain types of vehicles over others. Roughly 14 percent of all auto loans issued during the three-month period were for Toyotas, while slightly more than 13 percent were for Ford vehicles.