Posted on: 30 November 2019
Auto loans sometimes seem difficult to acquire. During most of the rest of the year, banks are tight-pursed, but when December rolls around, they seem to be a little more lenient. Your perceptions of auto loans and accessibility in December are not unrealistic. It is true that auto loans are easier to get this month than any other time of the year, and here is why.
Car Dealerships Want to Make Money
If you want to buy a car as a holiday gift, car dealerships go out of their way to help you get the financing. Even if they have to establish their own financing onsite, they will do it to get you a loan to buy a car. Christmas is the biggest shopping holiday all year, and car dealerships want their piece of the money pie, too. If you were to apply for a loan in June, and then apply again in December, you are more likely to get that loan in December when dealerships want to move as much inventory as they possibly can.
Banks Want to Make Money Too
Banks and credit unions are more likely to take risks and chances on loans in the fourth financial quarter of the year than at any other time. This is because they can look at their total net profits for banking services and see how short they have fallen on this year's goals, or how much more profit the bank or credit union would like to make this quarter and this season. Ergo, they will look for ways to help you get a loan, too.
You Can Get More Credit Extended to You Because Credit Card Companies Loosen Their Personal Restrictions
You undoubtedly have received a barrage of "pre-approved" credit card solicitations in the mail recently. That is because credit card companies also want a piece of the holiday cash pie. It is also because most consumers have tightened their financials and their purse strings over the last few months in preparation for holiday shopping, and now their credit score is much better. Either way, you can benefit from these looser requirements and take advantage of auto loans via credit card companies that focus on helping you buy a car. The credit cards may only be used for buying a car, or they may be "co-company" cards that can purchase a car from a dealership and make outside purchases because the cards are issued by one of the four major credit card issuing companies.Share