Just an update from the Midwest--my 23-yr-old son just got a car loan from a credit union.
He is 23, has taken a few college classes, doesn't know what he wants to do and was a big rebel in his adolescence. He works three jobs, delivering food (pizzas at one place and sandwiches at the other two). He makes surprisingly decent money doing that, more than enough to support himself by sharing expenses with his girlfriend, who is also on hiatus from college and manages a video rental store. In fact, he picked the second and third jobs so he could save up for a car downpayment. He very much needed a new car, and after a good deal of research, found a used Prius for a good price. We were both worried he wouldn't be able to get a loan given the economic situation, and he has "beginner" credit, just one credit card with a small limit, which I advised him to pay off completely just before the loan application.
So, long story short, he needed me to cosign because the loan amount was high, but he did get the loan at a reasonable rate. i know everyone' situation is different, but that's kind of my point: he needed the car and though you wouldn't think he'd be the ideal candidate, was able to get the credit he needed to buy something reliable, good on gas mileage and on top of it, he's thrilled to be able to make a greener choice.
Maybe credit union loans are the better way to go right now?