Following the recent credit crunch, car buyers are not as confident about getting an auto loan as they once were. However, according to an article in SFGate, more people are getting approved these days.

The reason for more people hearing those coveted words – “Your loan has been approved” – is due to a new government program that guarantees those loans by selling them to investors. As a result, banks and lending institutions are loaning out more money for vehicle purchases. But wait…there’s more! Car buyers are paying less for borrowing that money, giving a push to the auto industry in the United States.

Lenders gave out 5.5 percent more car loans during the third quarter of 2008 than the previous quarter, according to Experian Automotive. And December saw an increase in auto loan approvals for car buyers who had average or better-than-average credit. Dealers and finance companies were also trying to lessen their inventory which also helped more buyers get approved.

The limited supply of used cars has dropped, making loans for used cars more appealing to banks and lending institutions. If you have decent credit, this may be the best time for you to buy a used car. Visit your used car dealer today!