Used Car Dealer Magazine, a publication of National Independent Auto Dealers Association, has just reported that credit for auto purchases seems to be loosening up – which means more sales, and more dealer ad dollars for auto publishers. Lenders told Used Car Dealer that for the first time in 18-24 months they are forecasting growth in the next four quarters, thanks to capital beginning to loosen up and finance pricing coming down. CNW Marketing Research indicated a lower credit score for financed buyers than has been seen since 2006, another indication financing is opening up to those with poorer credit.
“There are more customers looking today than there were three or four months ago, so we’re seeing the first signs of the economy improving a little bit,” Bill Jensen, SVP for Chase Auto Finance, told the magazine. “More customers are feeling a little bit better about a car purchase.”
One outside-the-box finance option, as told by Used Car Dealer magazine, is that of Dealer Services Corp. This floor plan company in metro Indianapolis has started to offer F&I portals, giving access to both national and regional lenders, and help to dealers in structuring their finance deals. “We worked hard and put together a leading access network,” Brian Geitner, Dealer Services Corp COO, told Used Car Dealer. The portal now has 10 lenders in 24 markets, and 10 more expected soon.
Auto vertical publishers should be able to reap benefits of easier used car financing as consumers are okayed for loans in ever-bigger numbers.
Used Car Dealer magazine’s e-edition has the complete story.