Michigan Chevrolet Dealers May Be Finding Credit Battle Easing Up; Good News for Car Buyers

March 6, 2012 - PRLog -- DETROIT – Michigan Chevrolet dealers and other dealers throughout the nation are finding credit approval for car buyers to be less difficult these days, according to a Bloomberg article. It appears the time period when creditors were holding tight to approval because they were searching for the perfect credit score may be ending. cliché
The subprime mortgage debacle of 2008 is fading from memory for some, resulting in looser credit approvals for Michigan Chevrolet dealers and other dealerships.
In Craig Trudell’s article, Michael Mosser, general manager of Chevrolet and Cadillac stores in Ann Arbor, Mich., is quoted as saying, “The world is upside-down compared to then,” telling Bloomberg news that, “Today, somebody with a 500 credit score, I can get approved and in a Malibu.”
Previously, consumers with a score of 700 and above, ample income and a spotless credit history were hard-pressed to find approval, let alone one with attractive rates. This turnaround is likely the result of the rebounding automotive industry and will likely help automakers continue increase vehicle sales over the course of 2012.
Trudell also informed Bloomberg readers that it’s not only the number of approvals on the rise but the speed at which the approvals are happening too.
Some other important information raised by Trudell included:
•   Capital One with a 35 percent increase in loan origination during the third quarter, and a 75 percent increase during the first and second quarters of 2011.
•   Automatic denials are switching to automatic approvals was the indication given by Melinda Zabritski, director of automotive credit for Experian Automotive.
•   Home loans still seem harder to come by as Mosser, the dealer mentioned at the beginning of this article, indicated his own daughter was having lots of difficulty finding approval for a $105,000 mortgage on a condo, even with his help involving himself in the mortgage. Yet he said he could likely be approved for an $80,000 Escalade in 20 minutes.
All of this is good news for automotive dealers and also good news for consumers as they’ve been holding on to their cars for much longer, opting to repair instead of purchase. Reliable transportation is necessary for anyone to improve their lot in life and get back on their feet if they’ve been affected by the Recession. Now those who’ve seen a reduction in their credit scores have a better shot at credit approval for a better vehicle.
[Source(s): Bloomberg News]