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Bad credit car loans are easier to get than ever before
thanks to the growing subprime loan market. Almost half of all car loans today are bad credit loans
in that they are made to borrowers with FICO scores below 620.

Bad Credit Buyers Beware
Bad credit car loans come with slightly higher interest rates
which mean higher profits for car dealers and unwary buyers may wind up spending more than they have to. NADA Chairman Charley Smith admits
“We recognize that many consumers may not know that the interest rate may be negotiable or that the dealer may be compensated for obtaining financing.”

This is one reason many experts recommend that car buyers use “direct financing.” This means getting a car loan directly from the lender instead of through the dealer. Not only can they find more competitive rates on bad credit car loans
they can avoid the hassle of going through a dealer’s high-pressure finance office.

The difference between the interest rate on new or used car loans does not vary that much because used vehicles don’t depreciate as quickly as newer models. This makes them better short-term collateral for lenders. The average used car costs less than half of what the average new car does. That’s why they outsell new cars three-to-one. However
choosing a new car gives the buyer more control over optional features
plus a warranty that lasts for years.

Hispanic Car Buyers
Some of the shoppers looking for bad credit car loans are Hispanic. The term loosely refers to all Spanish-speakers. Most Hispanics in the U.S. are descended from immigrants from Mexico and Central America. Our Hispanic population now stands at 41.3 million and is growing three times faster than the general population. Hispanics will number 47.7 million by 2010
and 60.4 million by 2020.

Hispanic buying power is growing at an annual compound rate of 8.2%
nearly twice the rate for non-Hispanics. It is projected to reach $1 trillion annually by 2010. A recent survey by The Media Audit reveals the following interesting facts when it comes to car buying:

• Of the 26.1 million Americans planning to buy a vehicle this year
4.7
million are Hispanic. Of this number
1.9
million are planning to buy a new car.
• While 29.5 percent of all adults surveyed have car loans
just 27.3 percent of all Hispanics have car loans.
• Among the 4.8 million adults who plan to spend $30
0
or more on their next car
830
0
are Hispanic.

Much of the shopping Hispanics do for cars and loans takes place online. A study conducted by eMarketer projects there will be over 16 million Hispanic Internet users in the U.S. by 2007. That equals 8.4% of all Internet users. Hispanics go online at home an average of 9.2 hours a week. Seventy percent say the Internet is the best source for comparing the prices on both cars and loans.

Among the growing number of automotive sites aimed at the Hispanic market is Prestamo Automotriz. The entire site is in Spanish. It includes several helpful articles and an application for a free loan quote. While Prestamo Automotriz specializes in bad credit loans
all credit levels are welcome.