What do car shoppers do when they get turned down for a car loan for a new vehicle? They go to option number two, buying a used car instead.
The used car auto finance market isn’t immune to the tighter credit restrictions though. In 2008, more than 4.37 million used car sales were lost due to rejected auto loan applications, CNW Research reports. This number was nearly three times the units lost in 2006 and four times the units lost in 2007. The used car loan rejection percentage was 11.34 in 2008, which is five times higher than 2007.