First Financial Auto Loans

Buying a Car when 72- and 84-Month Auto Loans Are the New Normal

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“The market is now comfortable in the 75-month terms.”

– Melinda Zabritski,  senior product director of automotive finance at Experian Automotive

If you haven’t bought a car in a while, you may be surprised when the car dealer explains that you can buy more car than you thought possible. It’s not a scam and a wishful-thinking salesperson. The changing nature of both cars and car buyers has prompted auto lenders to extend loan terms, bringing monthly payments down.

Those of us of a certain age will remember that in the 1970s and 1980s, a car with 100,000 miles was destined for the junk yard, a hazard no one dared to drive. While the 100,000 mile end-life of a car has been a tough perception to shake, attitudes are changing rapidly.

The Proof Is in the Power Train

Vigorous global competition among auto manufacturers has pushed automobile quality higher over the past 20 years. Today, the classified ads are full of Volvos, Hondas and more with 200,000 miles and cab drivers brag of getting their Toyota Priuses to 600,000 miles . . . with their original batteries, no less!

Not only are cars being designed for longer life, advances in science and engineering have helped created more durable materials. Carbon finishes on parts now approach the strength of diamonds, ensuring that each part remains intact far longer. Hyundai and Kia now include 100,000-mile/10-year warranties on all of their cars’ powertrains.

Increased longevity means that a car’s value as an asset has increased. It only follows then that banks feel more comfortable lending for a longer term. The average car on the road in 1977 was 5.5. By 2014, it was 11.4, a change that indicates not only improved car quality, but a shift in the American mindset.

Pride in Long-Term Ownership

Where once, buying or leasing a new car every two years indicated success and wealth, now it just seems foolish. Conspicuous consumption has been replaced by an ethic of value and sustainability, and car buyers are looking to stretch their dollars by keeping their cars for as long as they can. Banks, therefore, not only have more confidence in the long-term value of the car, but in the trustworthiness of the buyer. Millennials are far more willing to buy a used car than their parents were.

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Longer Auto Loan Terms Can Mean More Car for the Money

With longer loan terms, buyers are making bigger, better purchases.  The car buyer with a $300 monthly budget may be able to buy new rather than used. He or she may also choose the certified pre-owned car rather than the questionable auto obtained through private sale. While the loan will last longer, the ability to buy a better car provides more value to the buyer. Down the line, as a trade-in or sale, the car will win the buyer more cash. The average subprime loan amount as of August 2016 was $29,359 for a new car and $16,120 for a used car.These figures are up 3% and 1.3% respectively from the same time last year.

If it’s time for a new or new, used car for you, make sure to check out our loans for all credit types, even bad credit!  Those with bankruptcy still on their credit reports still can get a car loan for a used or even new car. It takes just three minutes to apply here for a new or used car loan at the lowest rates!

 

Will a Solar Car Finally Hit U.S. Streets in 2016?

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Most solar cars only have room for one . . .

With our country’s growing awareness of our environment’s sensitivity, it’s no wonder that solar energy has been skyrocketing in popularity. Harnessing solar power makes sense, as our sun is a constant source of energy, unlike our other natural resources that risk depletion, such as fossil fuels. With this mindset, it would seem as solar cars would become a popular trendhere in the U.S. Unfortunately, no manufacturer has yet to create a viable solar family car.

Solar technology is challenging. The number of solar panels required to power a solar car inevitably creates a top-heavy vehicle that won’t pass even a basic crash test. In addition, the interior of these solar powered cars can become hot enough to endanger to the driver. Cloudy days make storage batteries unavoidable, but so far these batteries have caused the average solar car to weight too much for solar power to move it.

These setbacks haven’t stopped auto manufacturers from trying to develop the perfect solar powered car, however. In Australia, there has been a World Solar Challenge competition held every year since 1987. There, engineering schools and private companies enter their versions of the solar cars. Generally, the cars entered only have room for a driver, and no passengers, because the solar panels inevitably take up so much room.

Can “The Immortus” Be the First Widely Available Solar Car?
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The tide may be turning, though. At the 2015 SEMA Auto Show, the largest auto show in the world, Australian manufacturer EVX, debuted its solar sedan, called “Immortus” for its ability to run forever. The sportscar not only allows two persons to ride comfortably (along with two, small carry-on bags) it provides solar energy storage. In order to avoid the tough regulations of the crash-test requirements in most countries, the Immortus won’t be mass-produced, but rather, built per order in 2016.

Up until now, the only other commercial vehicle that has been running on solar power is one produced by Organic Transit, called “ELF” (Electric, Light and Fun). This 3-wheeled bicycle/auto hybrid combines solar power with human pedaling, and can reach speeds of about 30 mph. So far, around 500 of these models have already been purchased, and although they are not safe enough for highway use, they are still legal anywhere else that bicycles can be used.

It will be interesting to see where the future of solar powered cars will take us. With our country’s ingenuity and creativeness, it’s only a matter of time before solar powered cars will soon become the norm. Maybe 2016 will be the year it finally happens … we’ll just wait and see.

No matter what your dream car is, First Financial can finance it.
Even if you have low credit scores, bad credit, poor credit, no credit or even bankruptcy, First Financial can help you finance your dream car. We are the leading American provider of bad credit auto loans, and we approve 93% of all applicants through our easy, confidential application and quick email response. We can do this with the same level security and protection as the big banks provide. So apply today! You’ll know in a day whether you qualify for up to $45,000.

3 American Trends to Consider Before Buying a New Car

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Cars are synonymous with our nation’s coolness factor. Who can picture James Dean without his fancy driving skills in Rebel Without a Cause? And who can forget Vin Diesel showing off his motoring abilities in the Fast & the Furious franchise?

Many car owners have so much pride in their beloved vehicle that they even belong to fancy car clubs. The San Diego Mazda Miata Club started with just 11 members and has now grown to over 300 members.

Yes, Americans have always had deep affection for their cars … or at least they did. Recent auto industry research now indicates that only half of the millennials even bother to get their driver’s license by age 18. This is due to rapidly changing trends that have pervaded our culture recently, affecting our automobile purchasing choices.

So while the general population still longs for their dream car, these three popular American trends have changed its shape:

1.Cell Phone Dependence: With the overwhelming popularity of cell phones taking over just about every facet of our everyday life, it makes sense that today’s savvy car shoppers want an automobile that can fully utilize this device. As of 2015, many automobile makers, such as Volkswagen, Chevrolet, and Hyundai, are building their new models with Apple’s new connected-car application, called “CarPlay” (for Android cell phone owners, it’s called “Android Auto.”). This software on the dashboard makes it easier to safely interact hands-free with all of the features on your cell phone, eliminating the need for a blue tooth device. Many more car manufacturers are expected to utilize this technology in the coming years.

2.Safety Concerns: With the Internet and social media informing us of every tragic, scary, life-threatening event the moment it happens, Americans have become preoccupied with their own safety, and trying to protect it above everything else. Because of this mentality, cars have also come under pressure to provide ample safety features. Therefore, automobiles with excellent safety ratings and even driver assistance technology are essential to today’s car buyer. Whether it’s a blind spot monitoring system, a backup camera, or even a self-parking assist feature, all of these provide an added level of comfort and security to today’s cautious driver.

3.Caring for the Environment: Our culture is now preoccupied with taking care of our environment. Even Barak Obama has put his climate change action plan at the forefront of his presidential legacy. This trend means that when the next generation buys a car, they want to factor in its total carbon footprint. Big gas guzzler cars are waning in popularity in favor of smaller, economical cars that get excellent gas mileage. Electric cars are also on the forefront of this trend, as the Tesla and Prius brands’ skyrocketing car sales have proven.

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First Financial Provides Auto Loans, Whether You Have Good Credit or Bad Credit.
When you’re shopping for a car loan, remember that First Financial has been in business long enough to recognize the subtleties in each borrower’s financial situation. We also know that more than 50% of Americans fall into the subprime category, with credit ratings ranging from “fair” to “poor” to “bad.” Thankfully our lending partners accept auto loan applications and approve these types of borrowers every day, so apply for an auto loan here today. You can also follow us on Facebook to get frequent financial planning tips and research.


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