No matter how you slice it, the economy is in a pretty tough spot. Banks and other lenders are understandably hesitant to hand out new loans for just about anything after a surprising number of defaults in 2008. As a result, people who would have been able to easily secure a loan for a new car or truck just a year ago are suddenly being turned away. That makes getting the cash for a brand-new vehicle a serious headache. So what are buyers doing? As it turns out, the smart ones are turning to buying used in order to get a great vehicle for a fraction of the cost of a new one.

According to an article in SubPrime Auto Finance, a little over 68 percent of all auto loans were for used vehicles in the first quarter of 2009. That’s up around four percent compared to the same time last year. The same article says that independent auto dealers saw their loans for used autos climb to nearly 35 percent – up from 31.5 percent from a year ago. So people are buying more used cars than ever before. We knew that one already. What we didn’t know is why.

Since loans for used vehicles are almost always for lower amounts than new cars or trucks, lenders are more likely to take a risk to help you get the keys to your dream ride. After all, in the unfortunate event you do fault on the loan, the bank will have lost less than if you had gone for a brand new car. Just another reason why buying used is the way to go.