Is it true that it's easier to get approved for car credit, because car prices are down?

Question

i read that on a website.

Answer 1

bad credit is bad credit if you credit is on the fence and could either way you may catch a break because your monthly payments will be less

Answer 2

No.  Far from it.

Prices are down - true.  But banks are also tightening their lending requirements.  We are in  a time when people are foreclosing, defaulting, getting reposessed and defaulting on loans at a record pace.  Banks are going belly-up, lenders are getting tighter.  They are getting more careful about who they lend money to - since then have to be certain it will get paid back.

Deals that were a slam dunk as little as a year ago are getting scrutinized today.  I see more declines now than ever before on marginal credit issues.

So - prices may be down, but lending is tougher than ever.  BEsides, banks loan on a formula called "loan to value".  While the prices may be lower, the blue book value has also taken a pounding.  So the LTV is still the same, if not lower.