Experian finds which models car buyers had better credit with when purchased
U.S. credit reporting agency Experian recently announced the findings of a recent study that examined financing and credit scores of car buyers from the third quarter (Q3). One of their biggest findings was that car buyers who opted for a Volvo had the strongest numbers in terms of credit scores. Volvo owners were followed by those who drove Lexus, Acura, Audi and Infiniti vehicles.
Drivers with the lowest credit scores purchased Mitsubishis, and this was followed by Suzuki and Dodge.
When it comes to borrowing money to buy a car,Toyota was the brand most purchased with a car loan from the bank. Ford and Chevrolet were the two brands to follow Toyota.
"With leasing showing a continued upward trend, and lenders increasing their appetite for risk, consumers were in a good position to obtain a vehicle during Q3," said Melinda Zabritski, director of automotive credit at Experian Automotive. "Expanding loans to lower-risk tiers opens the market for more car shoppers, while an increase in leasing means it is easier for consumers to get more vehicle for a lower monthly payment. Both of these trends are positive signs of a strong and recovering auto finance market, which ultimately benefits the consumer and the entire auto industry."
Even if you do not have the best of credit, it is still possible to get a decent car loan that is affordable and can help to improve your credit score. It is advisable to secure your financing before even entering the dealership, as you will already have the money you need to buy the car you want. This way, you will not have to worry about the dealer trying to convince you of a deal that you are not comfortable with.
Those who need to improve their credit before purchasing a car can do so by first getting a copy of their credit report and making sure there are no discrepancies. Then, make an extra effort to pay your bills on time while getting rid of any excess debt, as this can help you get approved for a car loan.