Many consumers in the Tucson area have had financial difficulties as a result of the recession. The real estate bust in Arizona has hit this state harder than almost every other state in the country. Because of the housing bust, many people have had their credit damaged due to late payments and foreclosures. Although the economy has improved over the past few years, the fallout from the recession has made it difficult for many local consumers to recover.
A lot of people continued to drive their old vehicles a lot longer than intended due to financial difficulties. Now that the economy has improved, many of these folks need replacement vehicles. In order to facilitate used auto sales in Tucson, dealerships have to make sure that financing is widely available for those that need it.
Dealership such as those that sell used jeeps in Tucson need relationships with many different lenders in order to make purchases more affordable. Even though used vehicle prices have substantial discounts versus comparable new car prices, many cannot afford to pay the full cost in cash. With auto financing up to 84 months, it’s possible for many consumers to get low monthly payments that are very affordable. Low interest rates on auto loans has made financing a great tool for the car salesman to make purchases even more affordable. There are financial institutions that offer rates near zero percent interest for well qualified buyers. That is why financing is so important for used auto sales in Tucson.
The financing department at the dealership will have relationships with many different banks and other financial institutions. Some of them specialize in those with good credit. Other lenders prefer higher profits by doing business with customers that have less than perfect credit. Although interest rates are higher for those with less than perfect credit, the purchase will still have very affordable monthly payments, especially if the term is 72 or 84 months. As long as the buyer has enough income to repay the loan in full after accounting for living expenses, it is likely that the dealership will be able to find a lender that is willing to approve the customer. If the deal falls through, it is unlikely due to the lack of financing.