The down turn in auto sales over the past two years was partially due to the weak economy and diminished consumer confidence but was also driven by a lack of available credit for car loans in the market place.

Automotive News reports that the credit side of the equation is improving and lenders not only have access to more lendable funds but have also relaxed lending standards -- somewhat. For at least a year getting a loan was difficult even for buyers with fairly good credit. Now, with more money available, buyers with less than super prime credit ratings are finding it easier to get approval.

It helps that those buyers are also coming into the market better prepared. The article notes that they are paying down credit cards and bringing larger down payments to the table when applying. The expanding availability of credit is also helping dealers build their inventories.

--M.D.