Are you one of those many citizens with pretty good finances who has somehow been tarred with the brush of risk-averse lenders who tell you that you need a “bad credit car loan?” News from Texas shows that for some lenders, the tide is turning on offering good auto loan deals to those just below the “prime” credit market. This morning, a company called CarFinance Capital announced its move into the Lone Star State. Since the program is already in effect in California, CarFinance is now bringing this service to car dealers and shoppers in two of America’s most populous states, and the result could have big effects on the entire auto loan market. Today’s press release cites company President and CEO Jim Landry as saying that the program has already been utilized by hundreds of California dealers and their customers. Some of the other goals of the program are to provide speed in financing, and support for individualized loan facilitation.
CarFinance Capital offers “non-prime auto financing” to car customers. The specific credit range targeted is extremely interesting: while we have frequently reported that established lenders balk at any credit score below the 660 or 640 mark, the new program reached out to those in the critical 550-675 range. That includes a huge swath of Americans who, for one reason or another, don’t have sparkling credit. The reality, as lenders like CarFinance Capital have learned, is that the majority of these folks are still pretty good borrowers. They’re not destitute, nor do they treat money in a cavalier way. Many of these borrowers simply have a less than perfect financial history.
It’s taking a long time, but we anticipate that today’s move is part of a larger trend of lenders looking “beyond black and white” to service auto loans for a greater amount of the American population. Look for these sorts of options, previously referred to as “bad credit car loan” deals, coming to your state, and don’t settle for dealers or other lenders telling you that red marks are going to hurt your interest rates. Good research can help you get the kinds of deals you deserve, no matter where you buy your next car.