How Has Car Finance Changed in 2009

By: AllenStewart

We’ve been trying to shrug off the effects of the current economic downturn for a few months now but it’s clear that though the situation is inching along in the right direction, it’ll be a while longer before things get back to the way they used to be. In the meantime, we’re left with the task of evaluating the changes and working around them to give ourselves as much of an advantage as possible.

As with other industries and sectors, the car finance market has also taken a significant hit. The most prominent change you’ll notice is a drop in the number of brokers that can offer you enough options to meet your car loan needs. This is a direct result of finance companies tightening their fists and refusing to lend to prospective car buyers unless convinced of their repaying powers. This comes as no surprise considering the current forecasts predicting an increase in both unemployment rates and the cost of living.

It’s not all gloom and doom though. The good news is that there’s been no hike in interest rates. On the contrary, they have taken a dip thanks to the government’s efforts to get consumers to spend. Smart consumers are on top of all these changes and are using their knowledge of the current situation to procure competitive car loans.

They manage this by hunting out top-notch, dedicated brokers that have survived these times because of their access to several well-reputed finance companies. These brokers are still in a position to take a look at a buyer’s income as well as the car he’s planning to buy and come up with a range of loans suited to his pocket. The other advantage of getting a loan through such brokers is that they’re often in personal contact with one or two members of the top management and so are able to get cars financed quickly. Banks are also more likely to lend a listening ear to a broker considering that the reduced number of loans being approved is putting the pressure on them to increase that figure. And, might I also mention here that it’s still much easier on the pocket to finance a car loan through a broker than by approaching a lender directly.

Another strategy being used by prospective car owners to get the most out of this situation is to procure loans in advance or prior to actually shopping for a car. This gives them the advantage of access to hard cash. With this backing they’re able to approach sellers confident that they can drive a good bargain. Sellers are eager to raise dropping sales’ numbers and find it hard to resist the availability of hard cash. This makes them more than willing to negotiate, eventually earning the buyer a significant bargain.

There are also many scammers as usual in the market, trying to make the extra buck by manipulating their advertisements to sell “0%” car loans but falling into such traps can lead to major problems for buyers in terms of repaying what might turn out to be very expensive loans indeed.

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Professional Cheap Car Finance Brokers have weathered the financial storm and can offer low interest used and new car loan options.

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