Auto Loans News

Car and home balanced against each other
Jun, 28, 2012
Beating both credit card payments and mortgage bills, car loan payments have become the main priority of most Americans, according to a recent report by TransUnion. Prior to the housing crash in 2008, most Americans paid their mortgages before they did their car loans. Following the crash, however, most Americans saw it wiser to pay off their automobiles before diverting money to their mortgages. This came about as home prices collapsed and millions of Americans felt the sting of foreclosed homes and upside-down mortgages.
Expensive used car
Jun, 27, 2012
Back in January 2012, Sen. Ted Lieu proposed new legislation that would regulate “buy here pay here” auto dealerships, which are notorious for selling high-mileage cars to low credit borrowers. That bill went through the Banking and Finance Committee this week, passing with a 7-2 vote. The bill, more formally known as SB 956, has set out to cap interest rates on auto loans originated by buy here pay here dealers at 17.25 percent.
New car on cash money
Jun, 25, 2012
Car shoppers can breathe a sigh of relief thanks to the improved availability of better car loan rates and terms. An Experian report analyzing the last quarter discovered that consumer credit scores for auto loans fell close to pre-recession levels while lower car loan rates along with longer loan terms have increased auto purchase opportunities for buyers.
Gavel and judge's hand signing papers.
Jun, 19, 2012
In the recent conclusion of a legal battle between the National Automobile Dealers Association (NADA) and the Federal Trade Commission (FTC), Judge Ellen Huvelle ruled that dealers who use auto loan borrowers’ bad credit histories to charge applicants above-average interest on auto loans must tell borrowers that
Smiling salesman with keys to new car
Jun, 11, 2012
Despite the ongoing unstable economy, both new and used car ownership has increased. A major reason for this trend is that buyers are now able to find obtainable loans. By relaxing their credit requirements in the first quarter of 2012, auto lenders were able to provide loans to borrowers with subprime credit scores, cut interest rates, and extend loan terms so that repayment would be easier for new borrowers.
Stack of cash tied to a balloon
Jun, 5, 2012
A recently proposed bill in North Carolina’s legislature would allow certain auto loans to conclude in a final balloon payment. Balloon payments are a mechanism more commonly found in real estate arrangements, but North Carolina may blaze the trail of taking this practice in the auto sector. The bill, more formally referred to as House Bill 1155, was proposed by Rep. Tim Moore, a republican and the co-chairman of the state’s Rules Committee. Since its announcement last week, the bill has received a harsh public backlash.
Business Man Holding Car
May, 16, 2012
Ally Financial, the former financing branch of General Motors Co (GMAC), said on Monday that it will sell some of its international operations in order to repay the United States Government $12 billion it received in bailout money. In the same announcement, however, Ally claimed it “absolutely not” sell its U.S.-based auto loan lending business, according to Reuters. As part of its liquidation process, Ally declared bankruptcy for its mortgage unit called Residential Capital, or ResCap. ResCap filed Chapter 11, effectively bringing all of the company’s home equity loans to a halt.
Fuel Economy Speedometer
May, 14, 2012
Tesla Motors, one of the largest beneficiaries of the Department of Energy’s (DOE’s) auto loans, said that it plans to begin repaying the government this year. Last week, the company revealed more details about the Tesla Model S, an electric sedan that was financed with the DOE’s auto loan. Tesla qualified for $465 million and recently announced that it expects to use the last of that money by the end of the year.
Fake Glasses and Nose Mask
May, 11, 2012
Washington County officials of Pittsburg, Pennsylvania filed theft and racketeering charges against four members of the LoCastro family of Bethel Park and Peters for allegedly using fake car loans to buy vehicles, according to the Pittsburgh Post-Gazette. Prosecuters claim that between Dec. 23, 2008 and Feb. 5, 2009, Frank LoCastro withdrew multiple car loans from various lending sources and purchased multiple vehicles. Each car loan was taken out with fraudulent employment and income information, and LoCastro ultimately defaulted on each one.
Teenager with Driver's License
May, 10, 2012
Historically, teenagers couldn’t wait until they were old enough to apply for their driver’s license. That plastic card allowed young men and women to leave the house when they wanted, it relieved them of dependence on their parents or older siblings, and it allowed their social lives to grow exponentially. The driver’s license was the symbol of teenage freedom. But today, that’s changing. Recent reports reveal that fewer and fewer teenagers are actively pursuing a driver’s licenses, and instead are trying to avoid auto loans altogether.

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