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The Effects of Tax Refunds On Bad Credit Car Loans

4 March, 2011

If, like most Americans,  you listen to the nightly news your likely to hear a gentleman like Brian Williams reference the key lagging economic indicators.  Most economists agree that the following empirical values are a good indication of what happened in the economy over a past period of time.

  • The average length a person remains unemployed
  • The total dollar amount of outstanding non governmental loans
  • The average prime interest rate charged by banks and lenders
  • The change in the Consumer Price Index for services
  • The change in labor cost per unit of output
  • The manufacturing and trade inventories divided by sales
  • The outstanding consumer credit divided by personal ie

Here at Auto Credit Express, however, we closely monitory what’s going on in the marketplace and the economy by utilizing Google Insights for Search.  This tool is also a lagging indicator which lets youpare the volume of searches for specific keywords, versus, the entire web, or a category of web searched such as searches related to Auto & Vehicles.

Searches for Bad Credit Car Loans

As the graph below indicates, consumer searches on Google for bad credit car loans increased substantially sometime in January, whenpared to general searches in the Auto & Vehicles Category.

Searches for Cheap Used Cars

Similarly, Google Insights for Search shows consumer’s searches for cheap used cars outpaced the category starting in January.  It peaked in the beginning of February, and is now almost back to normal.

Searches for Car Loans

Consumer searches for car loans, on the other hand, did not see as dramatic variance from the Auto & Vehicles base line.

So for the first two months of 2012 more consumers were searching online for bad credit car loans and cheap used cars than they were searching online for car loans. At Auto Credit Express, we see this shift annually in consumer search behavior and are quite certain it is directly related to people with bad credit getting their ie tax refund check.

It is true that there are sign and drive zero down car financing programs out there, but since the economic down turn nearly every one of these auto loans are only approved for people with good credit, not people with bad credit or no credit.  Since most Americans that have credit issues live pay check to pay check it is difficult for most to save money for the down payment required for auto loans.

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by Admin

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