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2012 is the Year of the Car Loan, Says Brent Brown Toyota

In the aftermath of the recent mortgage crisis, banks tightened their books, weary to risk money on anybody with less than a 700 credit score. Those whose scores dropped as a result of the mortgage meltdown have had difficulty getting a decent car loan.

That may have changed, this year. On Thursday, Bill Gephardt of KNRS found reports that car loans would be easier to get in 2012 than in years past. To verify the research, he called upon Larry Terry, the general manager of Brent Brown Toyota Scion – Utah County’s only Gephardt-Approved dealership.

Terry’s response: “We’re already seeing it.” Toyota Financial Services, for example, will overlook a foreclosure if they perceive the customer to be an otherwise-dependable borrower, Terry said. Other banks are beginning to do the same.

“We have some other banks that are … not so much credit score-driven anymore,” Terry said. “So it’s a really good thing. We’re seeing people right now get approved on loans where they could not have two years ago.”

With national interest rates still low, this may be an ideal opportunity to buy a car with a good APR, even if you have damaged credit.

Susan Tompor, a personal finance columnist for the Detroit Free Press, reported Thursday that the average car loan interest rate is roughly a full percentage point lower than a year ago. Further, according to Experian, new car financing in q3 of 2012 to those with FICO scores below 680 was up 14.8% from last year.

“The banks are really sitting on a lot of money, and they do have to loan it,” Terry said. “They have to loan money to make money.”

In addition to their wide selection of new cars, Brent Brown Toyota Scion also carries an extensive inventory of pre-owned vehicles so customers can find the car that is just right for them. They offer the very best fully-inspected vehicles in the state, many of which are factory- certified models backed with a comprehensive warranty. Learn more at http://www.BrentBrownToyota.com.

Listen to the full interview: Brent Brown Toyota’s Larry Terry on KNRS

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