Many people need auto loans to complete the purchase of a used car. That's especially true for subprime buyers, or those who may not have credit scores as high as they would like. While many of these drivers may initially think a quality vehicle is outside of their budget, the prevalence of subprime auto loans changes the landscape. 

Auto bubble won't burst, says study
LendingTree, an online loan marketplace, recently released a study detailing the state of auto financing in the U.S. According to the report, the average credit score for people with car loans increased by 10 points throughout 2014, even as the number of subprime loans grew. Although the sheer volume of outstanding loans is increasing, lenders are still being careful about who gets these financing options – which ultimately means the so-called "auto bubble" isn't going to burst. 

"Our data does not substantiate the likelihood of an upcoming crisis," said Rick Finch, the general manager of LendingTree Autos. "While the current concern over subprime auto loans that end up defaulting is reminiscent of the mortgage meltdown stemming from mortgage backed securities, the defaults are being monitored and controlled by the lending market. Although auto backed securities increasingly contain subprime loans, loan defaults are not rising at a rate that signal imminent danger." 

Loans are growing, but so is safety
Some borrowers may hesitate after hearing the total sum of auto-related debt. According to The Fiscal Times, Americans currently have $886 billion in outstanding car loans, which is almost 23 percent higher than it was two years ago. Although the numbers sound daunting, all of this growth is good news for potential buyers. Lenders are more accepting subprime borrowers, connecting them with loans that get them behind the wheel. 

There are also many opportunities for borrowers to save money over the course of their car ownership. The Fiscal Times noted that interest rates are low, at least compared to recent history, and gas prices are declining compared to the past few years as well. 

Finding a perfect match
This steady market makes it the ideal time to buy used cars, even if you need the help of an auto loan to make it happen. Check out the wide selection of used cars at New Jersey State Auto Auction. Not only does this lot have hundreds of Carfax-certified vehicles, but it also boasts an in-house financing department that can help you secure the loan you need to afford a car.