According to Experian Automotive, a global leader in providing information and analytical tools, the U.S. automotive lending industry showed signs of stabilization during the third quarter of 2009. Experian throws light on the major lenders.

While Toyota Financial Services topped the market share in the third quarter at 11.2%, followed by Chase Auto Finance at 11.1%, GMAC at 9.1% and Ford Motor Credit at 7.1% for new cars; on the other, Wachovia Dealer Services occupied the market at 5.7%, followed by Chase Auto Finance at 4.5%, Toyota Financial Services at 3% and Capital One Auto Finance at 1.8% for the used ones.

However, the cost of borrowing has risen for people with a low credit score of 500 to 589. Considering the still not so healthy economy with high rates of unemployment, foreclosures, late payments etc., the financial institutes do hesitate to approve loans for the risky borrowers.

Interestingly, Auto Relief Group (ARG), nations leading Auto Loan Modification Company, reports increase in their clientele. “Though the dark phase of recession affected everybody badly, a service that actually bloomed is ‘Auto loan modification’ service. Recession brought along many late repayments for auto loan, even repossessions in worst cases but those who didn’t want their vehicles to be repossessed thereby lowering their credit score took the refuge in Auto Relief Group. Apparently, the market for auto loan modification gets the fuel from auto loan industry as their borrowers are the potential customers for loan modification if they lack enough funds to meet the EMIs,”

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