Atlanta New Car Finance

The current trend of zero-percent financing has forced banks to make some decisions regarding new car financing. Their choices: either pursue new car loans more aggressively or back way off from them. This is a trend that not only touches the country, but also more specifically Atlanta, Georgia.

Backing Off

Banks in Atlanta and around the country are facing stiff competition from auto manufacturers and credit unions. With these entities offering zero percent or very low percentage loans, many banks are pulling away from indirect lending. These falling interest rates squeeze profit margins to the point where it is often not worth the banks’ time and effort. In order to compete, most bank officials agree that they need to be either in new car financing and big, or not in it at all.

Going Big or Going Home

Rather than backing off from new car financing, some banks are responding to auto manufacturer and credit union competitions by being more aggressive with their lending. There is a new demand for financing car loans for people who have had past problems with their credit. Atlanta banks may even work with car dealers to put together loans that make sense for all the parties involved. The value for these banks is to offer to dealers for their buyers with less than perfect credit.

Making the Decision

In order for a bank to make any headway in new car financing in Atlanta, it must be committed to making loans via dealerships. An auto dealer will typically have only a short list of lenders they will call. Lenders at the top of the list will get the best loan prospects, so it is important for these lenders to be preferred. One way lenders are gaining preference is by using technology to approve loans with more speed and efficiency. This is really the only way to be a player and gain the number of loans necessary to be effective in the face of auto manufacturers and credit unions.