Recently government had announced a trillion-dollar program which helped banks, lenders, financial institutions, credit unions and auto finance companies make auto loans at a fast pace. The Treasury Department and the Federal Reserve made plans to spend around $1 trillion to provide low-cost loans and guarantees to hedge funds and private equity firms that buy securities backed by consumer and business loans.

Financial researchers and firms marked a 5.5% increase in auto sales for the third quarter of 2009. U.S Federal had also started a government budget scrap page program called as ‘Cash for Clunkers’ or ‘Car Allowance Rebate System’. This program was intended to provide U.S residents with new and more fuel-efficient cars in exchange of a less fuel efficient car. The main aim was to boost auto sales and provide a safer and cleaner environment by having more number of fuel-efficient cars on the roadways.

These government programs allow auto companies to sell more of their inventories and with that the auto lending industry also finds many borrowers. According to the Federal Reserve loans by 8000 national banks have fallen from 8% to $ 6.7 trillion. This will go on decreasing all through this year. Hence, to improve this, government is taking such steps that will help in economy and market revival and increase cash flow in the market.

However, the cost of borrowing is not so cheap for people in the bottom tier. It is because banks still avoid the risk of losing their money. According to Informa Research Services, a financial research firm headquartered in Calabasas, a top-tier borrower with a credit score between 720 and 850 can get a 36-month auto loan with an average monthly rate of 5.74 per cent, down from 6.65 per cent. On the other hand if a person has a score of 500 to 589, he will get average rate of 18.56 per cent instead of 16.47 per cent. This also affects the savings of both classes of people.

For the bottom tier people, we have an excellent loan modification service that helps to reduce the loan amount and interest payments. It even helps in term extension and finally your car is saved from repossession. Auto Relief Group has over fifteen years of experience and enjoys an area of expertise in loan modification industry. If banks are being unfair let us ask them to be fair with low credit score people. We help you renegotiate with banks and make a deal which satisfies both the parties.

Bookmark and Share