According to new figures from MoneyExpert,
lenders have stopped
lending on new
car loans as the
credit crunch hits the
car industry. The figures highlight what
car companies and
car dealers have known for some time, the starved
credit is badly damaging the
auto finance industry.
MoneyExpert figures indicate that some 300,000 drivers have been
rejected for car
loans in the last six months. According to the financial
comparison site, young motorists are the most likely to be
rejected.
Car finance is becoming just as hard to access as other forms
of credit, with
personal loans seeing major availability slumps. Sean Gardner
of MoneyExpert was reported as commenting: Car sales have
gone dramatically into reverse with motorists less willing to make
such a large purchase. And this research shows there are just as
few
finance firms willing to lend to those who do. With
new car and
used car prices falling there are plenty of good deals out
there. But drivers need finance if they are going to
cash in on the deals and that is becoming harder to get. The
banks have been bailed out twice already so taxpayers are
entitled to wonder why they won't lend particularly when they
are literally being driven off the road.
