News Summary: Auto loans getting easier to obtain
By
The Associated Press
July 18, 2012
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AUTO LOANS LOOSER: It's easier for car buyers with all kinds of credit to obtain loans. Average credit scores for new and used buyers are close to pre-recession levels after peaking in 2010.
WHY IT'S HAPPENING: Low interest rates make it easier for banks to get money. They're willing to risk subprime buyers because they can charge higher interest rates. The average rate on a new car loan is 3.2 percent for a person with the highest credit rating and 12.9 percent for someone with the lowest.
WHAT'S NEXT: Analysts expect credit to remain available if interest rates stay low.
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