A recent article in Bloomberg News points to the fact that General Motors is looking for additional sources for bad credit car loans
Here to help you
Here at Auto Credit Express we’ve spent close to 20 years working with consumers who have bad credit and helping these same applicants raise their credit scores and reestablish their car credit by financing a vehicle with a bad credit auto loan.
If you’re wondering how we do this, it’s simple: By filling out our online car loans with bad credit loan application and avoiding a tote the note dealer, you can begin a new chapter in your life by getting approved at one of our affiliate dealers for a second chance auto loan. Along with paying the rest of your obligations on time, you will then be able to re-establish your auto credit and, at the same time, raise your FICO scores.
One other reason many consumers visit our site is because we’re truthful about what it takes to do this. We readily admit that the process can be an expensive one because of the high interest rates associated with auto loans for bad credit.
General Motors and bad credit buyers
It’s no secret in the auto industry that General Motors is currently not satisfied with the number of bad credit customers its dealers can get financed. Mark Reuss, president of GM North America has admitted on several occasions that GM has lost a number of sales because Ally (formerly GMAC) doesn’t lend to subprime customers.
According to an article written by David Welch at Bloomberg news, currently 7% of GM’s customers are subprime buyers financing their vehicles with auto loans for bad credit, while other captive lenders (those owned by the auto companies) consider 17.1% of their customers to be subprime. Clearly, GM needs to close that gap in order to be competitive.
Welch points out that GM is currently not in a position to either buy Ally or form its own lending unit. However, with more competition among banks, the lenders currently working with General Motors may be able to offer bad credit auto loans to GM customers with “better loan terms or lower monthly payments.”
The bottom line
The bottom line is that the bad credit auto loan market, although better than last year, is still recovering very slowly. When compared with the car loan market three years ago, loans are being subject to tighter lending standards. Someone with a given credit score will be paying a higher interest rate and that person will be asked to put down a larger down payment than previously required.
As with anything else, the key to a successful bad credit car loan is focusing on the basics. At Auto Credit Express, that means helping people with credit problems get approved for new and used car loans through our network of affiliate dealers. These dealers work with a broad spectrum of bad credit auto loan lenders to get you approved. Since our inception, we have processed over 2,000,000 online bad credit auto loans and our dealers have closed over 1 billion dollars in auto loans.
So if you are serious about getting your credit back on track, you can begin the process right now by filling out our secure online bad credit car loan application.
