Car finance companies downsize operations

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) August 25, 2008 -- The raging credit squeeze has not spared the car finance market. Faced with shortage of funds, the UK's car finance companies are tightening their lending criteria to stay afloat. Welcome Car Finance, the leading player in the car finance market has withdrawn its presence from used auto show rooms. Prospective borrowers now have to go to the company's own show rooms to be able to borrow from them. Welcome has also withdrawn the £250 cash back offer, which till recently offered to all their borrowers.

Though Welcome's main rival ACF Car Finance (formerly Approved Car Finance) has not made any stated changes to their lending criteria, applicants who aren't employed full-time or have a monthly income of £1000 are seen to be getting rejected.

Reports also indicate that many small players in the market have either stopped issuing fresh loans or do very little lending. The situation is bound to affect used car sales. As lenders play safe, borrowers find finance inaccessible or just not enough for their requirements.

Affiliates of car finance companies too are experiencing dull business. Carsonfinance.co.uk, a leading car finance affiliate site has seen a 15% increase in rejections of car finance applications made through it. "We're trying to adapt to the situation as best as we can. This is hopefully a temporary situation and we'll see better days soon." said an employee of the website.

More information can be found online at http://www.carsonfinance.co.uk

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