Credit Loan > Auto Loans > Credit Unions Providing Auto Loans Are Seeing Big Gains

Auto Loans From Credit Unions Keep Sales From Record Lows

As the financial arms of major automakers scale back auto loans to new car buyers in the current economy, credit unions are increasing lending to many consumers that are having a difficult time getting financing. Credit unions are providing auto loans to 25% of the market share as of February, 2009. This is an increase in auto loans provided by credit unions of 10% over the previous year.

Even some of the major automakers are helping to promote credit unions as a way to help give a boost to new car sales in a time when sales have been falling. Only credit unions experienced an increase in the auto loans and car sales market. Every other major source of auto loans decreased lending in the fourth quarter of 2008.

It will take a loosening of credit by automakers to increase auto sales from their double digit decline that started in the fall of 2008. But until the health of the financial arms of the major automakers is returned, credit unions will continue to play a huge role in providing auto loans.

Automakers are currently stuck relying on cash rebates and other sales-promoting tactics to get by in this slow sales market. Meaning new car buyers are in the best position ever to take advantage of these deals.

Potential new car buyers visiting dealerships looking for the best deals they can get do not have to look far. Just about every dealership is full of new cars just waiting to be bought. As a matter of fact, there are so many new cars sitting around in the nation’s ports, and elsewhere, that automakers have no place else to put them.

With so many new cars sitting around, getting a new car in some cases can be a better deal that getting a used car, especially if the buyer is looking for a ‘08 model that was not sold last year.

With the global economy in recession, consumers looking to buy a car should realize that because car sales are down, trade-in allowances will be less than years past. So buyers shopping for a new car might be better off selling the current car to a private buyer before going to a dealership for a new one.

With just a little bit of forethought many consumers can get the best deals possible on auto loans and get a new car for thousands less than they would have last year.