As the economy continues to recover and consumers pay back their auto loans, lenders are easing back on the harsh credit restrictions enacted during the recession, according to Reuters.
Experian, one of the three major credit bureaus, revealed in a new report that things are looking good for those seeking an auto loan. The average credit score for an approved loan dropped by six points, allowing more buyers to get financing for their vehicles. In addition, trends favored consumers in just about every other category, including lower interest rates, more time to pay back loans and increased amounts of money loaned.
"This thawing of the credit pipeline has been good for everyone, from consumers to lenders to automotive retailers," said Melinda Zabritiski, director of automotive credit for Experian, told the news source.
With lenders easing their credit restrictions and dealers paying top dollar for trade-in vehicles, it may be time for many drivers to make the switch to a new car. Those who cannot afford a new vehicle at this time can keep their current car going by investing in vehicle maintenance, such as fuel injector cleaning and brake service.