During the worst of the economic recession, stringent lending laws made by the banks have forced many people with a poor credit condition to skip the idea of buying a new two or a four wheeler. In general, banks, credit unions, and such similar financial institutions do not entertain people with a tight finance. However, today the situation has changed for the better and a good number of car dealers are approving an auto loan without a hassle.
Sanctioning of auto loans by a dealership is a pretty new concept. In the past, they used to sell cars only. However, the lucrative business of lending has attracted them to this business. Nowadays, almost all reputed, large auto dealerships are seen lending a lump sum amount of money to customers who has applied for the same.
The concept of bad credit car loan is born after the emergence of the auto dealers approving loans to people with a poor or no credit score. Henceforth, if an individual really feels he or she doesn't have the sufficient amount of cash required to purchase a vehicle, he/she must immediately look for a good car dealer operating in the locality. The person can happily fulfill his dream of owning a car without getting upset whatsoever.
Compared to banks, a car dealer doesn't take much time to approve an auto loan. Usually, the process includes sitting with the lending team, having a formal discussion, filling up the hard-copy loan application form (you can also download the soft-copy form from the dealer's website), and waiting to get the loan approved. In a normal situation, a loan gets sanctioned within 24 hours from the time the request is sent. Banks, on the other hand, take days and even a month or so to sanction any type of loan (car loan, house loan, etc.)
During a period of urgency, going to a car dealer seems to be the smart way out to get approval within a short span of time. These dealers charge a low rate of interest depending on the economic condition of the customer. In addition, bargaining to lower down the interest rate further is possible in a majority of cases. Furthermore, car dealership often charges a low down payment at the time of applying for an auto loan to make it easier for people to manage the amount of money without a problem.
Key benefits of requesting for a car loan from a dealer: - Buyers with a poor credit score are getting eligible for a loan
- Loans are available on the purchase of used cars
- Lenders are asking for low monthly installments
- Borrowers are getting more time to re-pay the lending amount
Greater demand for loans has made a rising number of dealers to start lending money for the car buying purpose. Individuals must do a comprehensive research to find the best dealer in his or her locality to get quick approval of a car loan.
