You have planned to buy a car. Well, now you need to look into the payment aspect. Many people these days are seen applying for auto loans to finance their car purchasing plan. Auto credit loan is given by the banks, credit unions, auto financing companies, and car dealers. Each of the institution has its own lending policy, terms and conditions.
While banks do not sanction loans to an individual with a poor credit history, car dealers have no such clause. Auto dealerships throughout the U.S. are known to provide bad credit car loan to those with a tight budget.
Before approving a car loan, the dealer will tell the concerned potential borrower to pay a certain percentage of the car price as the down payment. The amount may vary from 10 to 20 % of the price of your chosen vehicle. There are dealers who might ease the burden of the down payment on the request by a customer as and when asked for.
Auto credit loan is given to an individual for a certain period of time. After the contract tenure gets over, the borrower needs to repay the loan along with the rate of interest imposed on that sum of money. Usually, a bank will impose a penalty (charge extra money) if the lending amount plus the interest is not repaid within the contract period. However, most dealers are good enough not to impose a penalty on non-payment of the amount within the contract tenure.
Whether you are purchasing a new car or a used one, you need to pay a certain amount of money as taxes and fees, and you also need to invest on insurance to get monetary benefits in case of a car accident or damage. However, insurance cost is more for a new vehicle and less for a pre-owned one.
The interest rate is charged based on your credit score. Of course, people want to have a low interest rate on their auto loan. However, such rules do not exist in the dealership world. There, flexibility pertains as far as the down payment and interest rate are concerned. On request, a car dealership can lower down the amount of money you need to invest as the down payment along with the rate of interest on the lending amount.
One of the biggest benefits of approaching a dealer is because of the instant approval of a bad credit car loan without evaluating a potential customer's current and past credit records.
Nowadays, almost all established car dealerships have a website where interested people will find detailed information about the company, its mission and vision, and about the lending procedure. Every dealer site consists of a soft-copy inquiry form which a person can fill up in case he or she has any doubts covering the lending process. On submitting the form, the concerned individual will be either called up or emailed by a representative of the concerned dealer. After an in-person meeting between the lender and the potential borrower, the customer gets the loan approved easily within a week.
