When you go to purchase a used car from auctions or private dealers, they will ask you about any auto loan finance you have. This is to ensure your payment method. Some people have the funds required to buy the car and sign papers to make the payment readily. But some others choose to find used auto loans for cash requirement. It is easy to get the right used car loans these days if you have good credit. But people with bad credit can opt for bad credit auto loan financing.
How much finance?
Auto loan companies normally get you about 80-85% of the payment for your used or new car. Most auto loan companies approve used auto loans quickly if the applicant has a good credit record. But even bad credit auto loan financing companies give a second chance to customers who wish to buy cars. In such cases, the customer can try to make a large down payment; minimum 10-15 percent down payment can be very good. This actually assures the auto loan companies that the person is investing something substantial and will pay back the used auto loans. Auto loan finance amount is taken while deciding the installment and time.
Where to go for auto finance?
The borrower can opt for auto loan finance from banks or from the car dealership itself. The rates of interest and the total payback time vary in banks and dealerships. Many customers prefer to choose the dealership for their financing. This is because the dealers know about the car the customer is buying. The dealer also has contacts through which a suitable loan can be arranged for you. Tie-ups with auto loan companies exist to help the customer with loans for the new or used car. The loan period can last anywhere up to 5 years on an average. The customer is asked about how quickly the loan can be paid back. Installments are fixed based on various factors like rate of car, down payment, time of loan and others. The rate of interest might go up to 15% as well.
There are several online auto companies as well that look at your monthly income, the suitable rates and the payback time the customer wants. With banks, one can also opt for secured and unsecured loans as auto loan finance. Bad credit auto loan financing companies also offer these loans. With secured loans, the customer is required to put down the car as security in case of any loan default. With unsecured loan, interest is higher but security is not asked for.
Also, when you opt for auto loan finance, the car title remains with the lending company until you pay back the loan. With the wide range of options, it is easy to pay back loans with a regular monthly income. The rates of interest can be brought down if you pay back the loan faster than the signed term. Reliable lending companies can give you good quotes through their loan calculators.