One of the last things on the mind of every car purchasers want is to haggle about the options related to financing a car, especially after the deliberations and bargaining on the car with car salesman and the dealer.
Or something worse could happen; you could be told that your credit rating does not make you eligible for getting a car loan. And then suddenly the dream of owning the car you just haggled for may remain just that, a dream. This scenario is especially true in the recession hit US economy which is still reeling under the economic chaos brought about by the subprime crisis.
Many traditional banks and credit unions which were earlier very flexible in disbursing services like auto loans very leniently, have become ultra cautious now a days. They shy away from giving car loans to individuals who have either poor credit rating or even no credit rating. Hence, it is advisable to get your credit score checked before you go to purchase your automobile.
But even if you do find out that may be because of a past indiscretion if you have landed yourself with a bad credit rating, it does not mean that you will not get your dream car financed. This mainly thanks to a new service called guaranteed car loan. A guaranteed car loan means that you will get guaranteed approval on auto loan irrespective of the credit rating you have. There are many lending organizations which provide these services throughout the United States of America. You can easily find them online over the internet.
In fact, it is the most convenient option for getting a car financed. All you have to be fill in your personal details and financing preferences online on their user friendly web portals. You can also compare options for interest rates as well as monthly repayments. Once you have filed your personal data, the information is processed by them and then you auto loan is approved.
You can also get a pre approved loan from these web sites even before you go and actually visit the auto dealership. This allows you to also keep a tab on how much you should spend on your car.Guaranteed Auto Loans are truly a boon for all auto purchasers.
Trances for owing a car are something that continue coming to your mind. Right! It is high time to make it a reality now. Now what? Oh! You have bad credit too? No problem that way also. Bad credit car loans are available on nominal terms nowadays. Car is not a small amount deal. It involves a lot of money. You just can’t go to a dealer pick up the car of your choice by paying the whole amount in lump sum. It is not that easy. Even if you have that much liquid cash in hand, you just can’t go for a lump sum purchase for a car; reasons being taxation rules and regulations.
Auto Loans Option
Financing a car lets you have your own vehicle without any trouble in filing your tax returns. Get a car on finance as it will save a lot of tax.
Low Term Finance
Prefer financing your car for less number of months as it will decrease the rate of interest and will let your car be in maintained position at the time of disposal or exchange. Though the installment will be quite high, you’ll get rid of car loan very soon.
Guaranteed Auto Financing
Though guaranteed car loan carries high rate of interest, but you can have it even with bad/no credit score. This is the best part of this type of loan.
Types of Car Finance
- Leasing – PCP (Personal Contract Purchase): Good for those who prefer low price deals.
- Hire Purchase: Offers you an option to have possession of a car at the end of the agreement; though you are all authorized to use it under the tenure.
- Car Loans: For those who are willing to pay high for a car but in installments.
How much sure you are that car finance will be serve a good option for you? Well, many of you won’t have fair idea about the auto loans and their benefits. Let us make it clear to all here that it certainly is a good option in case:
- You have bad credit
- You have no credit
- Short of finance
- Want to save tax
- Want to improve your credit score
When you are going through your financial statements and are stopped by the credit scores, it certainly it changes your expression. Either it is very good score which gets reflected by your smile or it is a bad credit rating which draws a frown from you. The frown deepens if you were thinking of buying a car. In such case, get the assurance that you are not the only one in similar scenario. There are many people scouting for the appropriate solution for financing the car.
Bad credit auto loans are offered by many lenders and financial institutions. Some may be manufacturers or dealers, banks or credit unions, or private lenders. Among these various, lenders, credit unions have been doing a marvelous job. The credit unions are the financial institutions which are cooperative in nature and are controlled by its owners. The owners are usually the members of the corporations.
Difference: The traditional financial institutions are generally not much interested to forward a loan to a person who has bad credit history because they are considered risky, but this mindset is changing. There are banks, dealers and financial institutions that are willing to approve the loan even if you have poor credit. The main difference is the motive of these lenders and that of the credit unions. These lenders work with a motive to earn profit; whereas the credit unions work to serve their members. The lenders charge a very high rate of interest but the credit unions charge reasonable interest rates because they provide the loan and other financial services to their members.
Popularity: The popularity gained by the credit unions over the last decade is due to the low interest rates and discounts offered by them. Even when you are surrounded by the various attractive offers, the advantages of the union is hard to ignore. The accessibility factor has also contributed to its growing image. You can seek information online or over the telephone. You can also walk to the nearest branch and talk to the representative of the credit union.
Availability: Availing a loan from a credit union is not difficult. You can get in touch with the credit union if you are an existing member of any of them. You can get your credit score verified from any of the professionals or credit bureaus or dealers. However, if you have gained a membership to the credit union, then seek the help of the experts of these unions. Their knowledge and professional services are of immense help in finding accuracy of the scores. It is important to know your financial standing accurately because it gives you the power of negotiation.
Procedure: The procedure to get the bad credit car loans approved is marked with routine rounds of the union office. While the dealers and lenders can generally get you the loan approval within a day or two. The completion of all the procedures and formalities takes over a week or two. Therefore, you will need patience to deal with it.
Bad credit auto loan comes as a solution to financing a car purchase especially if you have been under financial distress. Even when you have low income, or if you have bankruptcy on your credit report, there is no need to stay away from owning the much needed mode of transport. This loan can help you even when your credit scores are not satisfactory.
When opting for loan, most people tend to miscalculate and end up with a loan beyond their affordability. The interest rates are too high and they are not able to pay the monthly installments of the loan. The default payments result in lowering the credit scores you have and affect adversely when you apply for a loan again.
Effect: The poor credit score makes getting an approval of the loan a harrowing experience for most people. It is better not to apply in the traditional financial banks and institutions because they will perceive your financial condition as too risky to venture. Therefore, get enough information before you start the process of application.
Expectation: If you have bad credit rating, expect a higher rate of interest on loan quotes as compared to the other loans. This is because the lender thinks that you have default when it comes to paying off the loan. Your previous wrong decisions have a direct effect on your present and you cannot control the consequences. However, it is better not to give prime importance to it because it is only human to err. If you have the capacity of paying a higher amount of down payment, then it is easier to bargain the rates. Utilizing the extra cash reserve you may be holding is a wise decision to reduce your interest rates. Similarly, if you have a property or any asset (another car or house or machinery); it can become a collateral.
Any additional collateral of the same value as the loan amount covers the risk and assures the lender. It consequently diminishes the rates charged for the loan. Another key may be finding a co-signer who may be your parents, friends or relatives. The person should be financially sound with good credit scores. Then your loan application will be considered at par with new car loans.
Process: The key is a meticulous plan to sort out the financial condition you are in. The initial step is to review your finance structure. Understand the incomes you have and the amount you spend and save. You will have to find out the exact amount you can afford to pay every month other than the existing expenses without turning yourself broke. Thereafter, meet the lenders, dealers, manufacturers who are ready to give the loan. Gather information in details about every aspect of the loan from interest rates, repayments periods, terms and conditions applied, discount offers, etc. These details will need to be compared to choose the loan program that suits your affordability the best without driving you off the edge. Then you can apply for the loan and on its approval can buy the car you have been waiting for.
Easy Auto Finance Company offers bad credit auto loans for people with poor credit or no credit history with flexible terms such as no money down and no prepayment penalty through the network of sub-prime automobile lenders. Applying online can eliminates the applications or processing fees that are normally associated with getting a car loan through a bank or auto dealer.