New Standards Limit Consumer Credit Options


Low inter­est rates, easy cred­it, and lucra­tive leas­ing deals have helped deal­ers sell more cars and trucks and be prof­itable. Now with cred­it mar­kets tight­en­ing and lenders lim­it­ing loans to only the most cred­it­wor­thy, deal­ers are at risk. The Cal­i­for­nia Auto Deal­ers Asso­ci­a­tion claims that up to 40% of Cal­i­for­nia auto buy­ers will not qual­i­fy for a GMAC loan under the new lend­ing stan­dards. In addi­tion floor plan rates are going up along with the over­all cost of funds.