The auto loan market continues to strengthen as lenders continue to loosen their credit criteria for new car shoppers who apply for an auto loan. More new vehicle shoppers at all credit score levels are being approved for auto loans.
Data from CNW Research shows that auto loan approvals in April are up across the board compared to April 2010. Prime new car shoppers (generally a credit score of 700 or higher) were approved for auto loans 13.55 percent more than last April. Consumers with near-prime credit scores (about 670 to 700) were approved for new vehicle auto loans 17.81 percent more than in April 2010.
New car shoppers whose credit scores fall in the subprime category (generally 670 or less) were approved for new vehicle auto loans a whopping 92.59 percent more than last April, CNW reports.
Almost 90 percent of prime shoppers were approved for an auto loan this month, which CNW says is the highest approval rate in more than five years. Seventy percent of near-prime shoppers are seeing approvals on new vehicle auto loans this month.
This is good news for new vehicle shoppers, no matter what credit score level you’re at. The continued thawing of the auto credit market means it will be easier to get an auto loan. With more lenders approving loans for new vehicles, it also means that consumers will have an easier time shopping around and receiving competitive auto loan rates from several lenders.