Drivers in the market for an auto loan may soon see some changes in the types of offers from financiers, as the new Dodd-Frank act is introducing some reforms to the lending business.

In the past, lenders have been able to write bad loans (loans that don't have a good chance of being repaid in full) but remove themselves from having to deal with any risk by then selling those loans in a package to investors. When this practice got out of control in the mortgage industry, however, the housing bubble burst and contributed to the economic collapse.

So, Congress has taken steps to curtail the practice in the future, according to CBS Marketwatch. Now, lenders are only allowed to sell 95 percent of any one loan – they still have to be on the hook for the remaining 5 percent. The only way a lender can now sell off 100 percent of a loan is if they curtail the loan to meet certain requirements.

To meet these new requirements, the borrower must use 20 percent of the loan's total value as a down payment. The length of the loan can also not exceed 5 years, and for used cars loans the age of the car plus the length of the loan cannot surpass five years. Finally, the buyer must not have any 60-day missed payments, bankruptcies or foreclosures on his record over the past few years.

Drivers who are planning on taking out a car loan to finance their purchase may want to make sure that they meet their requirements. It won't be impossible to get a loan if they don't, but the terms could be less than favorable. When drivers are ready, New Jersey State Auto Auction can help them with all their financial needs.