As the country and the world continue to climb ever so slowly out of the recent recession, it is still difficult for most people to acquire an auto loan from a mortgage broker, a car dealership, or another type of lender. Car dealers from across the United States claim that customers are returning to their showrooms because the economy is showing signs of strengthening but those same customers are running into problems regarding their finances. Some car dealerships claim that almost three-fourths of credit applications by their customers are rejected by the banks because of the economical meltdown just one year ago has caused them to become hesitant to loan money.

If you are thinking about purchasing a new vehicle in the coming months make sure you talk with a financial lender prior to sealing the deal with the salesperson on the lot. This will make the process a lot quicker and easier for everyone involved. You are more likely to acquire a loan from your local lender than from a larger lending institution that is nationally based. Some dealerships are now matching their customers with banks willing to lend money to auto buyers. Most dealerships delving into this matching game are doing it for the first time ever but need to make the adjustment in order to sell their inventory and keep their doors open. However, over all one used Honda Richmond dealer is quick to note that more options have become available to consumers following the loosening of the credit crunch.

Remember that if you happen to have bad credit, it doesn’t have to set you back. For instance, bad credit car loans Boston are available to those that have less than ideal credit – meaning you can still drive home in the car you need regardless of a low credit score!

By applying for a loan prior to arriving at the dealership, the financial information can be passed along to the salesperson, who will then be able to determine what the customer can afford in terms of the year of the vehicle, the model, the interest rate on the loan and the payment amount needed monthly. Right now, credit unions claim they are approving only 60-65 percent of the car loans that they receive. Just remember, doing homework prior to stepping foot on the showroom floor is the key to getting a fair deal and not being left with unmanageable payments.

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Statistics for the automotive industry in the month of January can be a bit deceiving. Why? As we wrap up the end of a year, there are many car sales and deals available, especially during the holidays. To help boost a dealership’s end of year sales, many dealerships across the country offer discounts during the Christmas and New Year holidays; deals which many people take advantage of. So naturally, January’s sales seem to be a bit lower compared to the success in a month like December.

According to Edmunds.com, deals during the holiday season of 2009 were not as good as deals found in other times of the year. The next round of deals to be announced by the automotive industry occurs during President’s Day Weekend, which is when many deal-conscious consumers decide to purchase a new vehicle. So January is somewhat of a lull before things fire up again during President’s Day Weekend. If early sales predictions for 2010 meet their expected numbers, then the overall sales for the entire year should hover around 11.5 million.

If automotive sales hit 11.5 million for 2010 it would be a 10 percent increase from 2009, which allowed China to surpass the United States as the country with the most sales in the automotive industry. In fact, sales for automotives in the United States for 2009 were the worst in more than 25 years for the country.

Final January automotive sales statistics will be available just about midway through the month of February says Stamford used cars dealers, so stay tuned!

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For many, a big part of the American dream is owning a car. It serves as a rite of passage, a coming of age, if you will. Many of us have vivid memories of our parents going to the car dealership with us to get our first car. The first time you held the keys of your very own car may have been something special. Unfortunately, for those of us who have poor credit scores, these dreams quickly turn into nightmares.

An individual’s credit score dictates the rates you pay for many things. When it comes to financing a car, Chattanooga used car dealers will also refer to your credit score when deciding your interest rate and whether or not you deserve a loan. Individuals with a low credit score may feel like they have nowhere to turn for financing. Rest assured, as you are not alone. There are options.

First, you can increase your credit score over time by making all of your payments, and by making them on time. If necessary, approach a parent to take the loan in his or her name to get a good interest rate. This can only work if you agree to pay your mother or father every month when the payment is due. Thirdly, you can seek out bad credit loans to buy a car suggests one Honda Jackson dealership. As with any major decision, though, make sure you do your homework before signing a document. Look online for options and consult others for advice. There are options out there, you just have to find them.

Auto financing may be confusing, but St George Chrysler dealers admits that just a little bit of homework can go a long way in getting a fair deal on a new car.

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Bonds, backed by German auto leases are going to be sold by Bayerische Motoren Werke AG (BMW).  These AAA rated notes, with an approximate lifespan of 1.88 years, will total $1.1 billion dollars.

On January 8, 2010, Ford Motor Co. sold bonds backed by auto loans.  According to JPMorgan Chase & Co. data, investors want at least 1 percent more than what the benchmark rates for senior two-year bonds that have been backed by European automotive loans.  This has been cited as the lowest spread since the third quarter of 2008.

Between the dates of January 15 and January 22, BMW will be meeting with European investors.  These meetings will be taking place in London and Paris.

Bonds backed by consumer debt, real estate, and corporate loans have not encountered much of a market since 2007. The recent economic meltdown caused many investors to stray from assets that were considered to be hard-to-value. However, these two recent developments have caused this market to re-open.

Mortgage backed securities were considered to be some of the most toxic investments during the credit, mortgage, and stock market crisis.  Many investors cashed out of the stock market and banks refused to lend as much money.  In addition, many homeowners could not afford to pay their mortgages and had to foreclose on their properties.  This caused people to be afraid of leveraged securities.  This news, regarding BMW selling AAA notes, may be the start of investor sentiment changing in the market place because the notes have such a high rating.

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After months of talks, the Treasury Department has announced that it will be giving $3.5 billion to Detroit-based finance company GMAC. The amount is in addition to the $13.4 billion already invested in GMAC last year.

This year has been a turbulent one for GMAC according to personnel at Manchester Used Cars. The company has been evaluating its automotive and residential mortgage financing programs to ensure its growth and ability to repay government loans in the future. Despite setbacks, GMAC continues to be the main lender for GM and Chrysler dealerships and their customers.

Last December, GMAC became a bank holding, allowing it to receive aid from the Treasury. The Treasury now holds a 35.4 percent equity stake in the financial institution. Earlier this year, the Treasury stated that it would invest up to $5.6 billion in GMAC, indicating that more money could be alloted if the $3.5 billion is not sufficient capital.

Although auto sales in 2009 were down compared to last year, GMAC’s auto lending business has shown positive signs of life. In the third quarter of this year, the company showed a profit of $395 million, and its online consumer banking unit, Ally Bank, continues to receive plenty of new deposits.

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Amid the recession, vehicle leasing became a severe hindrance to automakers. As consumers defaulted on payments, and the value of cars following the lease term plummeted, some automakers cut back on vehicle leasing while other terminated it completely. However, has the economy gets back on its feet, automakers are beginning to return to leasing, but at a far more reserved pace.

Vehicle leasing has always been an attractive option for car buyers. Leasing typically provides lower payments on a new car when compared to buying. So for the expense of a used car, consumers can be driving off the lot in a new car. Car dealers also like vehicle leases because it keeps consumers returning to the dealership, both for vehicle maintenance and to acquire a new lease. Car dealers also get late model used cars from returned leases.

Despite the advantages of leasing for dealers and consumers alike, the recession drove car values down. When cars were returned to dealerships, the used late model cars were worth less than expected, resulting in steep financial losses. Today, leasing a car is pricier than in recent years. In addition, the advantage to buying a car is that they may have lower interest rates. But as the economy recovers, financial institutions are slowly becoming less weary of leasing.

In fall 2008, both Chrysler and General Motors put a stop to vehicle leasing and subsequently other major financial institutions steered clear of leasing to avoid risk. That led to fewer options for consumers, many of which couldn’t qualify for financing.

With more financial institutions become less afraid of leasing, it’s expected that vehicle leasing volumes with increase dramatically next year, but not to the extent seen in 2008. However, the changes in vehicle leasing has also contributed to rising residual values. While vehicle leasing is expected to become more prevalent, don’t expect lease to be much cheaper than buying in the near future.

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Black Friday is the day after Thanksgiving, and is notorious as a busy shopping day. And while good deal are abound, buying a car is not typically on the list for Black Friday shoppers. But new research from Truecar.com suggests that this day is ideal for getting a great deal on a new car.

Looking at day by day data over a period of several years, Truecar.com suggests that Black Friday is a day when discounts from dealers and incentives from manufactures add up to make it one of the best days to buy a car all year. Although the amount of a discount in the car business can’t be predicted due to the negotiation on the day of the sale, Truecar.com suggests that based on trending data the average discount on Black Friday is 7.5 percent. This figure is substantial considering the average discount on an average day during the year is about 4.7 percent. Of course, Pittsburgh Mercedes-Benz dealers stress that buyers should keep in mind that these discounts vary based on the make, model, and the model year.

Knowing that Black Friday will generate a buying frenzy among consumers, as it does every year, car dealers are trying to capitalize on that trend. Many dealers such as Philadelphia Chevrolet are looking for ways to standout and generate foot traffic on that day. Dealers have typically spent plenty of money on advertising and marketing for that specific day, but after one of the worst years for car sales, many dealers are eager to do more and capitalize on trends.

In addition to the Black Friday hype that may lead to attractive deals, the day also falls towards the end of the month which is great for car buyers anyway suggests Nissan dealers Boston. Throughout the month, dealers are increasingly eager to sweeten the deal. Buying a car at the end of the month is therefore better than buying on the first of the month. Additionally, dealers are eager to move 2009 model year vehicles off their lots completely before entering 2010.

As dealers feel the pressure to meet quotas, move 2009 inventory, and stay in the black, Black Friday will not be the only day that buyers can expect can get a deal on a new car in the near future.

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It seems as though the Cash for Clunkers program is facing new obstacles. Following additional government spending, the National Automobile Dealers Association has begun urging the government to shut down the CARS program immediately.

The NADA believes that the brisk sales triggered by the Cash for Clunkers program has made dealers weary of exhausted funding. With so many cars being sold through the program, Framingham Infiniti dealers say the NADA is rightfully concerned about the program’s $3 billion budget.

Car dealers have generally liked the influx of new customers that the program has helped bring in explains Pittsburgh Cash for Clunkers dealers, but there are still lingering concerns and doubts. Reports have suggested that the majority of dealers are still waited for delayed payments by the federal government. Regardless Transportation Secretary Ray LaHood has attempted to reassure dealers, claiming that all dealers will be reimbursed and that there are plenty of funds available still to ensure that will happen.

With an enormously bureaucratic system, the reimbursement period has taken longer than expected for many dealers. Despite reassurances, the NADA is still concerned that car dealers will not get paid, which would add insult to injury say New York Dodge dealers as many dealers continue to struggle amid a weakened economy.

Despite reassurances, car dealers are still expressing concerns over the Cash for Clunkers program, and are pushing for a suspension at the very least. For a program that’s still relatively new, it’s facing a second suspension which doesn’t bode well for the program’s longevity.

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The saga of Cash for Clunkers continues, but for how long?

In a recent University of Michigan study of customer satisfaction, Cadillac topped the list with Lexus as brands that consumers are most satisfied with this year.

Last year, Cadillac earned the number two spot in the list, but this year the American luxury brand has matched Lexus with a score of 89 in the American Customer Satisfaction Index, which has impresses Cadillac CTS Pittsburgh dealer customers. Customer satisfaction for the all the Big Three brands rose slightly overall.

Interestingly, the rise in satisfaction from Big Three customers may have nothing to do with changes to products or customer service. As sales declined, Pittsburgh Cash for Clunkers suggests more customers did not return to the Detroit brands. Therefore, the remaining customers were a smaller group overall, but more satisfied.

Customer satisfaction is an important factor that serves as a good indicator of what buyers are likely to make a repeat purchase. A Boston Collision Center points out that others near the top of the customer satisfaction list included Lincoln-Mercury, Chrysler, Buick, and Honda. Volkswagen make the largest just on the lists, increasing its score by 6.0 percent from last year to achieve a score of 86, marking the first time the German automaker has scored above the industry average of 84.

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Cash for Clunkers has been a tremendous success so far, despite substantial setbacks. After only a week following its launch, the program was suspended as Congress decided to appropriate more funding to keep the program afloat. But with another $2 billion added to the program, some suggest that the “gold rush” mentality might be subsiding, leading to pre-Cash for Clunkers sales levels to return by next week.

Since its peak in July, auto research groups have suggested that interest in the program has fallen about 15 percent. The program spurred interest from car buyers at a Ontario Oregon Subaru dealers and elsewhere as it provided $3,500 to $4,500 vouchers for those that traded in an older gas guzzler for a fuel-efficient new car.

With new funding, demand has waned according to industry experts such as Edmunds.com. Analysts say the original funding budgeted for the program was too low in relation to the auto market overall and this created a “gold rush” mentality to take advantage of the cash before it was too late. With another $2 billion earmarked for Cash for Clunkers, some among Boise used cars dealers fear the urgency has been minimized.

Despite what many suggest is a decline in the Cash for Clunkers frenzy, one dealer that specializes in Birmingham used cars expects new car sales  to be healthy as car buyers will be bargain hunting this summer prior to 2010 model year releases. Despite what slowing popularity the Cash for Clunkers program may have, auto sales will likely improve over the summer as consumers hunt for bargains before new models hit the showrooms this fall.

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The Cash for Clunkers program continues, but will the demand?