here have been several signs that the economy is recovering from its low three years ago. The unemployment level has dropped to 8.6 percent and fewer people are claiming unemployment benefits. Additionally, lenders are more likely to provide auto loans to people with poor credit histories looking to finance their cars. Edmunds.com reports that consumers are more likely to plan their car purchases than before, and interest rates have fallen across the board.

Though things are looking up for buyers with poor credit histories, auto finance experts urge them to consider buying used cars for the time being. The reason being that despite higher interest rates, lenders are more apt to approve applicants even if they have a lower credit score. In fact, the average credit score for a used-car buyer is nearly 100 points lower than for someone purchasing a new car. Not to mention the price of the car will be lower as well.

This is certainly the case at New Jersey State Auto Auction, where prospective buyers are given automatic approval regardless of whether or not they have good, bad or no credit at all. This is made possible because the dealer has partnered with the Credit Acceptance Corp. (Corporation) to aid in the process.

By being approved, consumers are given an opportunity by New Jersey Auto and Credit Acceptance to rebuild their credit history. There are few better ways to raise your score than by paying back an auto loan on time.

Regardless of the fact lenders are more apt to approve a loan, there are still things that consumers should consider before buying a car. According to Edmunds, you should be sure to set a budget and be prepared to make a larger down payment.