Not every person on this earth is that much lucky to buy a car. I mean to say they might not have that much of money ready in hand to invest on their favorite brand or model of four-wheeler. However, there is a popular saying that every problem has a solution; hence for people with a tight finance, there are auto credit loans available to make them happy and go home driving their dream car.
Banks – You need to know about the popular financial institutions that lend money to potential car owners in need of the same. The most traditional and well-known lending institution is the bank. However, banks have their own terms and conditions before applying for a car loan such as repayment policy, mortgage in case you fail to repay the lending amount after the end of the tenure, amount of loan you can take, etc. People with a bad credit finds it difficult to abide by the rules of the bank since they might be jobless or in a debt or bankruptcy.
Credit Unions – Many States of America have credit unions operating with full force. These institutions give auto loans against a small rate of interest compared to what a bank charges for the same amount of money. However, similar to the banks, the U.S. credit unions also require some kind of loan repayment assurance and a fixed income rate below which they will not provide you a car loan. Thus, individuals with a bad or no credit score doesn’t really qualify for auto credit loans from these financial bodies.
Private Car Dealers – Apart from selling different types of vehicles, the private car dealerships in USA have started offering loans to people interested to buy new or used cars. Compared to the above two mentioned loan giving institutions – banks and credit unions, dealers approve car loan for people with a bad credit. They charge a low rate of interest and a low down payment at the time of selling the car. In extreme cases and on the request of the concerned potential borrower, a dealer often asks for a zero down payment to ease the financial burden on the person.
Types of loans people can ask for?
You can ask for a brand-new car loan or a used four-wheeler loan depending on the type of vehicle you have planned to purchase. The pre-owned vehicle market is pretty good in the U.S. and people who have a poor credit rating and insufficient funds often think it better to invest in a used car that is kept in a good condition.
Advantages or benefits of taking an auto credit loan from a dealership
Hassle-free Way to get a Car Loan Sanctioned
When you approach a dealer who is selling cars and at the same time offering auto loans then automatically you become a lot stress-free since you don’t have to run at different places to apply for a loan as well as prepare the papers.
Faster Financing Option
In a majority of cases, potential car buyers get the keys of their favorite car on the same day they have applied for an auto loan. Thus, people can happily go back home driving their prized asset.
Preparation of Documents
Most of the essential documents are prepared by the auto dealers themselves giving the borrowers enough time to relax and do other essential tasks. An applicant only needs to bring an address proof, his age proof, and identity documents and sign the required papers to complete the loan taking formalities.
Extension of Repayment Term
One of the primary reasons many people with a damaged credit prefer taking loans from a dealer is because in many cases the dealers extend the payment tenure to let the borrowers collect the necessary amount of money.
Discounts on Online Applications
Yes, many US-based dealerships offer special documents or rebates to people who apply for a car loan over the internet. The dealer websites are accessible, 24/7; hence you will not have any problem visiting a site and clicking on the car loan section to fill up and submit a soft-copy loan application form online from any part of the world.
Sally Jackson is a car lover and is the owner of 4 different types of car. She enjoys writing about cars and about the auto credit loans. She herself has bought 2 of her cars against a loan.