Why Auto Loans are increasing Day by Day?

Finding an auto loan has become a piece of cake for American car buyers. It is quite evident from total outstanding auto loan amount for the fourth quarter of 2014. The amount rose to a record-breaking high of $886 billion. According to The Fiscal Times, the average loan amount has increased to $28,381 from $950 a year ago. Also, the percentage of new vehicles purchased with financing in the fourth quarter of 2014 increased by 84 percent when compared to the previous year.

What’s encouraging Americans to apply for Auto Loans?

Americans have returned to the automotive market and they are ready to shell-out money for their passion: The car. Here’s why:

• Expensive Vehicles

According to TrueCar.com, buying a new car or a used car has become very expensive. It costs near $31,000 to buy a brand new vehicle and a massive $16,800 for buying a reliable used car. Such high price rise has forced people to obtain car loans.

• Low Unemployment

According to Bureau of Labor Statistics, unemployment rate dropped to 5.5 percent. Lower unemployment rate has allowed Americans to shed their inhibitions. They are now willing to buy a car of their own instead of sharing it.

• Low Interest Rates

Even though the interest rates are slightly higher than last year, there are relatively low in comparison to previous years. According to the latest survey of Bankrate.com, average loan rate for a 60-month new car loan is 4.31 percent. You can obtain a used car loan for the same term with 2.65 percent in interest.

• Sub-Prime Loan Approval

Sub-prime auto loans are available to car buyers with credit score below 580. There is a large group of car buyers who fall under this category.

In the last quarter of 2014, there was a minor decrease in the share of sub-prime loans. However, the number remains still strong at 20.3 percent. Such a high number indicated the ease of getting a sub-prime loan.

So, these are the reasons for auto loan rise. If you are interested in buying a car, this is the best time to buy it.

Car Destination will help you in fulfilling your car dream. The sub-prime auto financing company ensures that you get quick bad credit low rate auto financing for your favorite car.

3 Tips for obtaining Low Rates on New Car Loans

16.5 million!

It is not the population statistics of an American city. It is the total number of cars soldin the month of July. What is the reason of such an enormous increase in car sales?

• Car manufacturers have started offering huge incentives on new cars and

• Lenders have relaxed the lending norms

So, if you are an ardent car lover, this is the perfect time to bring home your favorite car. Do not worry about high interest rates. You can obtain low rate car financing without any trouble. Learn the three most important tips for securing low rates on new car loans.

1. Create a Car Budget

Cars are the next big purchase after a home. And, with the constant rise in car prices, it is very important to spend your money wisely. By creating a car budget, you will be able to manage your loan in a better way.You should start by listing down your monthly income and expenses. Ascertain the amount of monthly payment. You must decide on the loan term as well. It will help you in calculating the total car loan amount.

2. Plan for Down Payment

Down payment is ideal for a new car buyer because it lowers the loan amount and makes car buying affordable. Usually, 10% of the total car value is sufficient for making down payment. But, you can improve your approval chances by increasing the down payment amount.

Is it possible to buy a New Car without Down Payment?

Car manufacturers have made it easier for buyers without down payment. They are offering humungous incentives. You can use the cash incentives as down payment. This is the ideal way of making down payment without parting ways with your savings.

You can even trade-in your old car. Calculate the value of your old car and ask the dealer to reduce the same amount from the total price of your new car.

There is one more way of making down payment. You can apply for personal loans and put money down. But, make sure that you get affordable rates on the personal loan.

3. Obtain Quick Loan Quotes

Along with the manufacturer incentives, the current interest rate on new car loan is very low. To take advantage of this situation, you need to find a quick auto loan. So, don’t waste time in walking down to a bank or a lender. Apply online for instant quotes. Online bad credit auto financing companies have lenient lending criteria. Also, they believe in offering new car loans because new cars have longer life than used automobiles.

However, make sure that you approach a reputed auto financing company. The company’s web page should be secure. Check for “https” in the address bar while submitting your personal information.

Once you submit your loan application, the online auto financing company will analyze your financial situation and offer you loan quotes. This process won’t take more than three days. So, it is advisable to take help of online company for quick completion of the new car loan process.

Car Destination is a reputed online bad credit auto financing company. American car buyers trust the company for securing instant approval and low rates on new car loans. Apply now and get ready for no obligation quotes.