Are you in the retail automotive market with a plan to buy a car? Despite a decent monthly pay package, you find the prices of cars high enough to pay from your pocket. During the recession period, many people stepped back from investing in a house and on a vehicle simply because of a tight credit score. To ease the situation, a number of auto dealers came forward with the innovative auto loan program. The dealers gave the auto credit loans against a low down payment and with the lowest interest rate.
People with a bad credit has a unique problem to face – they could not approach a bank or a credit union for a loan. As you might know, banks and such similar financial institutions never approve loan to a person who don't have a considerable amount of bank balance and/or assets to keep as a mortgage. The bank will seize the car or the mortgaged item on non repayment of the car loan at the end of the contract period. In contrast to this case, the car dealerships readily sanction a bad credit car loan, and they are also known to extend the time for the repayment of the lending amount in case the borrower so requests.
The major advantage of applying for auto credit loans from a dealer lies in the fact they approve the money at a short notice. You don't have to wait for days to get the required amount sanctioned as people have to do in case of a bank that takes up to a month to approve a loan. Thus, people urgently looking to purchase a car should better move to a dealer rather than to a bank.
Here are some of the key benefits of a car loan application from a dealership:
1. Get Any Amount as Loan – It is a fact that you can ask for any amount of money as a loan without facing a volley of questions from the dealer as to whether you will be able to repay the same or not.
2. Low Interest Rate – Most borrowers have a tight financial condition; knowing this fact most dealers charge a low rate of interest on the lending sum of money.
3. Zero or Low Down Payment – Almost all auto dealerships ask for a low down payment. Again, there are car sellers who don't even ask for a down payment in order to attract more customers to their showroom.
4. Repayment on Installment – They give you the option of repaying the entire amount or on an installment basis (weekly, bi-weekly or monthly).
5. Extension of Contract – The contract period within which you need to repay the entire amount of money can be further extended on request by a borrower. This type of privilege is not given by banks and credit unions.
The USA car dealerships not only provide loans on new cars but also on used cars. Thus, if you have decided to buy a used car, it won't be a problem for you to get a loan sanctioned within a short span of time.
