As you can imagine, the financial crisis the world has experienced lately has affected car auto financing. Here are some of the changes you might see when you get ready to finance a new vehicle at your New Jersey auto dealers:
- 100 percent financing deals are scarce. Many lenders now want a down payment of between 10 and 15 percent, even from people with good credit.
- Fewer consumers will qualify for zero percent financing promotions. Unless your credit rating is extremely high, you may have to pay a regular interest rate between 7 and 10 percent.
- Lower trade-in values. Dealers are more cash strapped than before, and less willing to take a risk on whether they can sell your car after you trade it in.
- Smaller inventories. In the same way that lenders have put restrictions on consumer loans, they’re clamping down on dealer loans that let dealers get inventory.
- Fewer dealers. Even some of the largest dealerships in the country have been wiped from the map due to the economic crisis.
- Harder credit requirements. Unless your credit rating is way above average, you will probably have to pay a higher interest rate than before.
