Personal Loans for Auto Finance Grow in Popularity According to a Survey from InnovativeFinance.org

The auto industry is playing a major role in the efforts of personal loan lenders to recover from the financial crisis. These loans are becoming more popular as consumers turn to terms that are designed for their needs.

The auto financing market has sparked interest among personal loan companies, where auto finance loans rose at an annual rate of 2 percent last year, according to auto industry analysts. Loans through auto finance companies now account for $17 billion each month, up 36 percent since 2008.

This is due to the increasing number of people buying cars every day and banks seem less interested than ever before in making auto loans because of tightened credit underwriting standards, said Jeff Reardon, senior finance writer with InnovativeFinance.org "Borrower have adapted by turning to auto finance companies to make their auto purchases," she said.

Best Place to Compare Personal Loans for Auto Financing

Personal loans can be very difficult with bad credit, but it is possible with the right auto loan lender. The best place to get personal loans for people with bad credit is over the Internet. This way you can find lots of lenders with great offers in just few minutes and compare them before making a final decision on which will provide you an auto financial services with reliable rates and affordable repayments.

One factor in favor of personal loans for auto financing is that this type of lending has become more transparent in recent years with lower down payment requirements, short repayment terms, and manageable monthly payments than ever before, Reardon said. Auto financing also provides consumers with an option if their credit scores are too low, have poor or no credit history, are dealing with bankruptcy, foreclosure, repossession, et cetera.

Auto finance companies began to install auto buying websites that will provide consumers financing options at the same time they search for cars. "For years auto loan companies just provided auto loans after you already bought a car," Reardon said. These auto finance companies also offer auto leases to consumers who want short-term access to a new car without the long-term commitment of auto loans.

"This is giving more opportunity to people with bad credit histories because lenders rely less on FICO scores," she added. And these personal loans are usually offered online, where it's easier for lenders to underwrite customers with bad credit reports.

Best Place to Research Auto Loans for Borrowers with Good or Bad Credit

Lenders that provide auto financial services, such as auto loans and auto leases, are likely to consider personal loans for consumers who have good credit scores. The best place to get personal loans through auto finance companies is online since these auto dealerships work with different types of lenders. This will give you the opportunity to choose between many auto loan options at any time.

Auto finance company websites allow consumers with good credit scores to view the offers from all participating lenders when they search for a car on their site. Rate estimates including APRs, down payments, monthly payments, and terms come from each lender in a box labeled "offers" on the auto finance company's auto buying site.

"You can look at all car loan offers from different auto finance companies and compare them side-by-side," Reardon said. "This way you can make the best choice."

The auto industry is a great place to be as auto sales are soaring, which means many auto finance companies are looking for personal loans lenders to accommodate their customers with bad credit or good credit scores. These days it is much easier to get auto financial services when you have a poor credit history, provided that you know where to find these auto dealerships.