Finding a car loan, is it possible?

For the first time American car buyers worry they may not qualify for a loan. Financial experts say it will be a while before banks offer attractive loans again. This is forcing some people to change the way they’re buying cars.

Ken Jamison and his wife aren’t letting the economic crisis derail their plans. They’re steering clear of loans altogether.

“I just feel that if we buy with cash, we will be better,” said Jamison.

JD Power says as a result of the credit crunch, a record 30 percent of car purchases this fall will be all cash deals. It reports average down payments have jumped to $5,000 as banks get stingy about lending.

We asked Ford Dealer Mark Williams if it’s possible to get a car loan right now.
"Yes, yes,” said Williams.

Williams says most of his customers still qualify for a loan.

“If you have steady job time, a mortgage, traditionally pay your bills, there’s still plenty of people willing to lend you money,” said Williams.

If you have no cash and your credit has a few blemishes, a bank may say no.

In that case, you may want to try the dealership’s finance office. The rates may be higher, but dealers are desperate to make sales, which means they’ll work hard to find a loan for you.

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