Auto sales in March were up nearly 25% versus one year ago. General Motors sold enough cars to reclaim it’s title as the No 1 automaker. All these improvements could signal the curtain call for incentives and discounted loan offers.

Perhaps not all bets are off for a cheap car loan this summer – although Toyota broke it’s own record in March for 0% loans, it’s sales were only up 4%. Perhaps we can expect Toyota to offer discounts for the rest of summer in order to gain back customers and reputation after it’s massive recalls.

If you are in the market for a new or used vehicle, auto loan rates may be ready to start ticking up, start thinking about pulling the trigger.

Auto loan rates continue their decline and auto sales increase. December is expected to be the highest volume car sales month since the cash for clunkers program ended.

Why are rates so low despite a 50% increase in foreclosures last year? Currently the government is guaranteeing these loan instruments to large private banks. If you don’t pay, the investors don’t lose their money, the government has given them a fail safe plan.

The bad news is this TALF, the government program that insures the auto loans to investors, ends in March. The program, launched in March 2009, stabilized the auto loan securities market that was on the verge of collapse. This has given the private banks almost a year of insured lending, allowing them to lend money cheaper. Once the program ends, it’s likely interest rates will go through the ceiling.

It’s primetime for Pay Day Loan pushers to advertise all sorts of creative options so that you can take advantage of “end of year clearance” sales at your local car dealership by using a Bad Credit Car Loan.  While these sales generally can save you several thousand dollars,  the savings can quickly be lost if you are unable to repay your pay day loan on time.

It’s likely there will be a flood of barely used vechicles hit the market this summer as the “Cash 4 Clunkers” new car recipients realize they still can’t afford a new car payment.  These cars will be repossessed and sold at a step discount.   You may be able to buy a 2009 model sedan for 6-7,000.00 with only 12,000 miles on it.

Perhaps passing up on the year end specials is the best idea for now.

More people are falling behind on car loan payments.   A report issued by TransUnion indicated that on average,  81 out of 1000 people were more than 60 days late on their loan payments between July and September, up sharply from 73 out of 1000 during the 2nd quarter of the year.

As more people fall behind on their payments, banks will be forced to charge higher fees.   This action is likely to put pressure on auto sales.   The bottom line is the future for both banks and autos is looking worse.

Many people are pointing to the rallying stock market as an indication a turn around is close for the banking and loan sectors.   The truth is,  there is such a rush to hedge against the coming implosion that the commodities and metals are running to record highs again and this is making the market look strong.

I see nothing but very painful times ahead for both banks and borrowers in 2010.

Incase you haven’t noticed, there are tons of auto loan news headlines coming in on Google and other networks from a website called http://www.pr-inside.com/

It seems like Google is allowing this to take place. Perhaps the offending site has a ton of relevant valid content posted from it each day. Whoever is posting the articles about Bad Credit Loans should be removed from their service immediately!

Remember with these loans folks, the easier they are to get the more expensive they are going to be in the long run. There is no instant lending solution for all credit levels that won’t eat you alive!

GMAC announced it will be selling $2.9 billion in fixed notes to help cover the massive $3.9 billion loss form last quarter.  The notes will be FDIC insured and will earn a measly 1.75% interest maturing in 3 years.

Seems like the tables have turned on the giant lender as it’s not forced to plead for loans itself.