GM Acquires Americredit as Getting Credit Still a Problem for Many Car-Shoppers, Reports Edmunds.com
SANTA MONICA, Calif. — July 22, 2010 — Inability to get loans is restricting some consumers from buying new cars, according to Edmunds.com, the premier online resource for automotive information who provides advice for consumers seeking credit at http://www.edmunds.com/car-loan/.
Deep sub-prime, sub-prime and non-prime new car loans collectively dropped 6.3 percent in the first quarter, while prime and super-prime loans collectively increased 1.4 percent compared with the same period last year, according to Experian.Edmunds.com's research indicates that the average interest rate on a new car loan in June 2010 was 4.7 percent. In June 2009 the average annual percentage rate (APR) on auto loans was 5.9 percent.
Ivan Drury, industry analyst for Edmunds.com, explains, "Today most auto loans are going to buyers with good credit who qualify for a better rate, and that is lowering the average."
"Chrysler and GM are aware of this trend and are anxious to tap into buyers presumably shut out of the market because of their credit scores,' asserted Bill Visnic in his report for AutoObserver.com, which is entitled "Still-Unsettled Credit Environment Little Help for Limping Auto Sales" and can be found at http://www.autoobserver.com/2010/07/still-unsettled-credit-environment-little-help-for-limping-auto-sales.html. "In this depressed auto sales market, deep sub-prime and sub-prime borrowers represent a market that might help generate the increased sales volume they need to fuel their post-bankruptcy revivals."
About Edmunds.com, Inc. (http://www.edmunds.com/about/)
Edmunds.com Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone at www.insideline.com, features the wireless Web's highest quality car photos and videos. CarSpace is the most established automotive social networking Web site. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit. Follow Edmunds.com on Twitter@edmunds and fan Edmunds.com on Facebook at http://www.facebook.com/edmunds.