Survey: Majority of Consumers Uncertain of Loan Approval Potential
NORWALK, Conn. — Despite signals of a growing U.S. auto
industry recovery as well as the overall economy, a February FreeScore.com
survey revealed nearly 66 percent of consumers think it will be just as
difficult — or even harder — to obtain a vehicle loan this year versus last
year.
FreeScore.com shared the exact questions and results the
survey generated:
Do you think it will be harder, easier, or the same as it
was to get an auto loan in 2012 versus 2011?
—Same: 41.41 percent
—Easier: 10.53 percent
—Harder: 23.84 percent
—Don't know: 23.22 percent.
Do you feel more or less confident about getting an auto
loan than you did a year ago?
—More confident: 26.93 percent.
—Less confident: 30.96 percent
—Don't know: 42.41 percent
In applying for your most recent auto loan, did you know
your credit scores before you applied?
—I knew all my scores: 28.48 percent
—I knew two of my scores: 3.72 percent
—I knew one of my scores: 8.36 percent
—I did not know my scores: 31.89 percent
—I never applied for auto loan: 27.86 percent
As the survey showed, 31.9 percent of consumers said they
failed to check their credit scores prior to making their most recent vehicle
purchase.
Site analysts fear the fact consumers are unaware of their
credit standing can adversely impact their confidence in "big ticket" purchases
like new or used vehicles.
The results surprised FreeScore.com, since Experian
Automotive previously discovered the average interest rate for a new-vehicle
loan fell to 4.52 percent in the fourth quarter, down from 4.84 percent a year
earlier. The fourth-quarter reading also was the lowest since Experian began
tracking the figure in 2008.
Reacting to the results, Carrie Coghill, director of
consumer research for FreeScore.com, explained, "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," Coghill added.
The site added its survey data was collected from Survey
Sampling International, using an opt-in panel of random consumers.