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!

The trick here is to make a low offer and sweeten your sweet deal slowly. When you decide you’re ready to open negotiations, start with a low offer. Don’t go too low or you won’t be taken seriously. Roughly make an offer that is 2-3 thousand dollars lower than the price of the car. Of course, you want to adjust relatively depending on the make and model of the car.

The general idea is to go below the asking price by a considerable margin and ask the salesperson to “take it to the boss and see what happens,” so to speak. By sending your salesperson in to see the boss, you can buy time and work on your next move. With a low price on the table and a world of possiblities, the process can take quite a while and can be tiresome. But if you hold your ground and work the low price deal sweetener, you should be on your way to one of many beautiful used cars.