CAR LOAN RATES » Auto Loan News

The delinquency rates dropped on auto loans made indirectly through dealers and directly to consumers in the second quarter. The numbers are provided by a report from the American Bankers Association (ABA) and may be an indicator that predictions made by economists that the economy has already hit rock bottom and is slowly-but-surely recovering and on target.

But then again, maybe not. While the report showed promising numbers in the auto loan realm, including a drop in dealer-arranged auto loans 30 days past due from 3.42 to 3.26 percent, and also a drop from 3.01 to 2.46 percent on auto loans made directly to consumers by banks, some other numbers in the report did not show proof of a recovering economy. For instance, home equity loan delinquencies rose from 3.52 to 4.01 percent in the second quarter. Also, personal loan failures rose from 3.47 to 3.90 percent.

ABA's chief economist, James Chessen, notes that the reason auto loan delinquencies have dropped while other numbers are on the rise is because auto loans are so easily cleaned up. A one- or two-month delinquency can result in a quick car repossession and bank charge off, while mortgage loans may spend numerous months delinquent before any action is taken.

Of course, you don't want to be in a position where your delinquency could turn into a repossession. So if you're in danger of this occurring, consider:

• Contacting your lender to see if you can make some type of payment arrangement until you are financially on track.
• Cutting costs like cable TV, eating out, and magazine subscriptions to help fund your car payments.
• Downsizing your vehicle to one that requires a less expensive monthly note.

While economic times are tougher than they have been in years, if you act carefully and accordingly, you can help avoid your own auto loan delinquency.

It's no secret that when you have bad credit, you're either going to have a hard time getting a used car loan, or it may come with sky-high interest rates. Fortunately, it doesn't have to be this way. There are auto loans that you can take on if you have bad credit (s0me even guaranteed). Let's look at a couple of routes you can take to help you avoid paying an arm and a leg for the car you want.

Apply Online

The Internet makes it easier than ever to find a bad credit auto loan within minutes. By simply typing in the keywords "bad credit auto loan" or "guaranteed auto loan" you can find companies that are willing to work with individuals who have less than stellar credit scores. What's even better is that by filling out the application over the Internet, you can very likely find out whether you've been approved in a few minutes. If you have been approved, they can either transfer funds to your bank account or send you a certified check so that you can buy the car and begin making your payments back to that financial institution.

Shop Around

One thing to keep in mind as you're looking for bad credit auto loans is that some will definitely ask you to pay sky-high interest rates. However, the benefit that you have of searching online is that you can shop around endlessly until you find a company willing to offer you a reasonable rate. It's not nearly as tiring as driving from dealership to dealership or bank to bank for help. By sitting at your computer, you can find the best rate for you with only a few tired fingers to contend with.

Don't feel discouraged if you have bad credit and want to buy a used car. Instead, sit down at your computer, grab yourself a cup of coffee, and begin searching for loans until you find one that matches your budget.

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