Changing nature of car finance

Sep 1 2010

The last couple of years have seen huge changes taking place in the financial environment with reputed institutions crumbling and nations taking a big hit in terms of their own credit ratings. Lenders therefore have become very particular about whom they lend to and this is impacting many consumers directly. They are now finding it difficult to find loans for cars, houses and even get credit card sanctions.
It was not uncommon for people to make use of their home equity to take loans for home renovation, new cars, holidays and so on. That was because home prices were climbing rapidly and lenders did not mind this practice, but ever since the housing industry took a dip, this option is no longer available to people.
Home mortgage rates too have changed and the qualifying criteria have also been modified in order to keep out people with low credit rating. People can no longer get loans without submitting enough proof of income and the adjustable-rate mortgages too have been taken off.
Though Car Finance rates have not spiked very much, it is becoming difficult to get approvals for Car Loans unless the credit history is strong.

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