Lenders Loosen Standards On Auto Loans

U.S. lenders are lowering their standards for auto loans, with average credit scores for new car borrowers falling to the lowest level since late 2008, according to a credit bureau report released on Thursday.

Lenders are loosening up because few existing borrowers are falling behind on payments, said Melinda Zabritski, director of automotive credit at British credit information firm Experian .

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JRobUSC - 5/26/2011 5:05:47 PM

+1 Boost

What's the definition of insanity? Doing the same thing over and over and expecting a different result.

Whelan - 5/27/2011 8:24:59 AM

+2 Boost

I'm confused. The average score dropped to 766? I always though 766 was a good score. At least according to all the financial institutions a score in the 7's (especially over 750) puts you in the top tier. I always figured having an A was a good thing. But apparently lenders treat loans like KBB car values, sure your a car is worth 5k but we are giving you 2. Sure your tier one but your getting a tier 3 rate.

http://www.insider-car-buying-tips.com/fico_score.html

I can tell you when I go for my next car, I'm bringin my score in with me for proof if they try to pull this **** on me.

Whelan - 5/27/2011 2:16:58 PM

0 Boost

Sub $300 a month puts you in a C or 3? Maybe with 5k down on a 24-36mo. lease with 12k a year. Unfortunately that is not me. I finance my cars 48-60 months at a time and drive them when I own them till I am ready for something new.

I'll own my car in August, collect my title and save $350 a month on a car loan for a few months. Then sell/trade it and get my new car.

aarononymous - 5/28/2011 3:40:01 PM

0 Boost

actually that was Pretty in Pink, 16 Candles was the 944