Bankrate: Why is it harder to get a car loan in 2023?
Rebecca Betterton | Bankrate.com (TNS)
When the time comes to purchase your next vehicle, you want to focus on finding your dream car, not fighting for affordable financing. But since the pandemic’s early days, the car market has shifted. Inflation made finding competitive rates challenging, and supply chain issues pushed average car prices above MSRP.
Before setting out to find summer deals on new wheels, consider how the state of our economy will impact your price.
Economic outlook makes lenders cautious
Securing vehicle financing is a challenge for borrowers right now due to one primary issue.
“It’s harder to get a car loan now because it’s hard to get a car,” shares Satyan Merchant, SVP and Head of TransUnion’s Auto Finance Business.
The current state of the economy has shifted the lending environment to make buying a challenge, even for those drivers who’ve found their perfect set of wheels.
Lenders have tightened their standards, leading to a decrease in vehicle loan originations. And higher rates make even inexpensive vehicles a challenge to afford.