Consumers Are Choosing to Pay Their Auto Loans First
PR Log - Sep 04, 2012 - A new trend is happening among consumers and many industry analysts did not see this coming. Consumers all over the United States are starting to prioritize their bills. Prioritizing their bills is not the surprise, it is which bills come first on the list.
Many consumers are choosing to pay for their auto loans before they pay for their mortgage. A new survey has shown that many consumers are late on their mortgage, late on their credit cards but manage to pay their auto loans on time every month.
The reason for this is pretty simple. Consumers can't live without their vehicles. They need a way to get to work, and they need a way to get to the store. This is the number one reason why consumers are choosing to pay for their cars over their credit cards or home mortgages .
The results are the same all across the United States, but some states were hit harder than others when the real estate bubble popped. Florida was one of the states. The percentage of consumers that are late on their auto loans in Florida is higher than the national average, but the good news is this. This number is also falling. One year ago, the national average of people that were laid on their auto loans was much higher. The same goes for the state of Florida.
Mark, a representative for http://www.loans.net, a loan shopping website has noticed an increase in auto loan approvals.
“People are starting to realize that without a vehicle they have no way to get to work. The auto loan market has seen substantial growth in just the past few months, it is expected to continue throughout the year.
Even though unemployment rates are higher than they have been in the past four years, consumers that are employed are having to travel great distances just to get to their job. Public transportation is not an option for them. It only makes sense that they would be paying their auto loans first.
We have also noticed a record number of users searching for auto loans. Banks are starting to approve loans to people who they were not approving loans to just a few months ago. Our website has helped thousands of people with both good credit and bad credit get approved for auto loans.”
Analysts have also noticed another new trend in auto loans. Consumers are choosing use vehicles over new vehicles, and banks are happily approving loans for used vehicles. Consumers are starting to realize that new vehicles may not be the best choice. Vehicles that are a few years old may offer the best deal for the money.
Car dealerships all across the United States are having a difficult time keeping used inventory in stock. Consumers are purchasing used vehicles in record numbers.
Mike, an employee for a car lot in Florida has this to say.
“Our new car inventory has slowed down and we are finding it difficult to move new cars off the lot. Our used car inventory is the opposite. We are having a difficult time keeping used cars in stock.”
Analysts are predicting that consumers will continue to pay their auto loans first.