You are currently viewing Car Deals Are Easier to Find but Lenders Are Tightening Their Terms

It has become harder for some borrowers to get affordable car loans as banks and dealerships face a rising number of delinquencies.

New cars are more available this spring, and manufacturers have even begun offering deals to entice buyers.

But at the same time, lenders have been tightening the terms of car loans as they deal with a rising number of delinquencies. That has made it harder for some people to get affordable loans.

Access to auto loans for both new and used cars was generally worse in January than in December and down year over year, according to Dealertrack, a Cox Automotive service that tracks credit availability based on factors like loan approvals, terms and down payments. The impact was seen at banks, credit unions and dealerships.

“We are seeing credit access tighten in all channels,” said Sean Tucker, a senior editor at Kelley Blue Book, Cox’s car research and sales website.

Subprime borrowers

Keep reading this article on The New York Times Your Money.

Leave a Reply