A new plan from the federal government may soon make it easier for Americans to get access to loans which can help in the purchase of a used car.

The program from the Federal Reserve and the Treasury Department, called the Term Asset-Backed Securities Loan Facility (TALF), would inject $200 billion into the financial system which could lead to an additional $1 trillion in loans, including auto loans.

Industry experts hope that the influx of government funding will unclog the credit market and allow Americans to more easily obtain car loans.

Federal Reserve chairman Ben Bernanke told Congress this week that TALF, which will begin later this month, will have a positive effect for consumers in the very near future.

“We should see immediate benefits to students, to credit cards, to small businesses, to consumer loans,” Bernanke told lawmakers.

Although it has become more difficult for many people to obtain loans due to the current credit crunch, lenders say there are still loans available for people looking to buy a used car.

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