Although at first glance the two don’t seem to be related, the motor loan industry is reeling as a result of the current housing and student loan crisis. On the one hand, the housing market is killing the motor loan industry as consumers decide that it is better to default on their motor loan than lose their home. On the other hand, students are facing a shortage of available student loans and may consider dropping their motor loan or avoiding a car altogether in order to make ends meet.Auto sales are also down, which is more bad news for the motor loan industry. Banks have tightened their restrictions to the point now where even people who thought they had very good credit are finding it difficult to get good terms on their motor loan. For subprime candidates, it has become all but impossible to even get a motor loan, regardless of which bank they approach. Experts worry that the trend in the motor loan industry could continue for another two years before the housing market begins to stabilize and stop affecting motor loans. Until then, they recommend doing all that you can to improve your credit score.
Related reading: Motor Loans
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