NORWALK, CT--March 16, 2012: Nearly 66 percent of U.S. consumers think it will be just as difficult, or even harder, to obtain an auto loan in 2012 versus 2011, according to a February FreeScore.com survey. This is the case despite the signals of a growing recovery in the U.S. auto industry and overall general economy.
According to the same FreeScore.com survey, 31.9 percent of consumers said they failed to check their credit scores prior to making their most recent auto purchase. The fact consumers are unaware of their credit standing can adversely impact their confidence in "big ticket" purchases like new or used automobiles.
The survey results come on the heels of a report that the average interest rate for a new vehicle loan fell to just 4.52 percent in the fourth quarter, according to Costa Mesa, California-based Experian, a leading data information provider. The rate dropped from 4.84 percent a year earlier and is the lowest since Experian began tracking the figure in 2008.
Despite the lower rates, nearly one in four (23.8 percent) of the 300 consumers surveyed said they expected it to be harder to obtain an auto loan in 2012, while 42.4 percent said they expected it to be just as difficult to obtain an auto loan this year as it was in the previous 12 months.
Nearly one in three (31 percent) of those surveyed said they are less confident about their own ability to obtain an auto loan this year than in 2011. More than four in 10 (42.4 percent) said they were unsure if it would be harder or easier to obtain an auto loan now than it was 12 months ago.
According to Carrie Coghill, director of consumer research for FreeScore.com, "Knowledge of credit scores in advance of an auto purchase can help consumers in the loan process. Additionally, those who know they have good scores are in a stronger position to negotiate a better deal. Conversely, those with the lowest credit scores will know in advance that they may find it more difficult to obtain an auto loan, and may try to take steps to take charge of their credit standing in order to secure the best interest rate possible."
Survey results below
Q: Do you think it will be harder, easier, or the same as it was to get an auto loan in 2012 vs. 2011?
| Same | 41.41% | ||||||||||||
| Easier | 10.53% | ||||||||||||
| Harder | 23.84% | ||||||||||||
| Don't know | 23.22% | ||||||||||||
Q: Do you feel more or less confident about getting an auto loan than you did a year ago?
| More Confident | 26.93% | |||||||||
| Less Confident | 30.96% | |||||||||
| Don't Know | 42.41% | |||||||||
Q: In applying for your most recent auto loan, did you know your credit scores before you applied?
| I knew all my scores |
28.48% |
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| I knew two of my scores |
3.72% |
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| I knew one of my scores |
8.36% |
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| I did not know my scores |
31.89% |
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| I never applied for auto loan |
27.86% |
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The survey data were collected from Survey Sampling International, using an opt-in panel of random consumers.
About FreeScore,
FreeScore, the value leader in online consumer credit services, provides members with affordable, unlimited access to all three credit scores from each of the national credit bureaus: TransUnion, Experian and Equifax. Over one million consumers trust FreeScore.com for their three bureau credit scores and information. For more information, go to FreeScore, . FreeScore, is a service of FYI Direct, Inc.
