As the housing market continues its downward spiral, automakers are definitely paying attention and making some changes to the way that they handle motor loans. Even GMAC, one of the largest providers of motor loan financing in the United States has pulled back availability on many of their loan products in an effort to reduce the amount of risk that they are facing.One unfortunate side effect of the housing crunch has been that home owners are deciding to default on their motor loans in an effort to have enough money to pay their rising house payments. This is bad news for auto makers who are already complaining of a slow year in sales. The situation with motor loans is not expected to get better any time soon, at least until the housing market and the economy begin to stabilize.Although banks are still offering motor loans, the restrictions in order to get one have tightened up considerably. Those with poor credit are finding it nearly impossible to get a motor loan as lenders try to avoid having a subprime motor loan crisis to go along with the subprime housing disaster. For those with good credit, getting a motor loan should still be easy, but this may change if the economy worsens.
Related reading: Motor Loans
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