A few decades back, it was the norm to save up from earnings and then go to buy a car. Credit was frowned upon. But in today’s scenario, no one wants to wait for years to buy a necessity like a car for the family. In such a scenario, there are hundreds of automotive loans to help the customer with funds for the purchase of the car. Used car auto loans are in great demand and the credit auto loan suppliers are also springing up fast. The customer can now get online for auto loan quotes and choose from good or bad credit auto loans as per individual requirement.
Sources of automotive loans
- Banks: banks offer used car auto loans for the borrower. There are secured and unsecured credit auto loans that may or may not take the car as security. The rates of interest are higher for unsecured loans because the car is not put as security. Government banks have good and low rate auto loan quotes and schemes. But at times, it takes time and a lot of running around to get loans approved.
- Dealership: it is feasible to opt for automotive loans from the place where you buy the car. Auto dealers have their own selected list of used car auto loan lenders who can negotiate with the customer for suitable auto loan quotes. The dealer knows the car condition and terms of sale, and is thus equipped with the knowledge to find the right loans for the customer. Good and bad credit auto loans are offered at low rates.
- Online auto loan companies: several online auto loan companies exist for automotive loans. There are many schemes and the customer will find it easy to get many auto loan quotes and compare them. Online auto loan calculators can help the search. Again, the rates are low and negotiable online.
Terms and conditions
These vary for different automotive loans and as per customer request.
The lenders might ask for an application containing contact details, details of monthly income and the details regarding the car purchase. Credit report might be checked and customer could apply for bankruptcy automotive loans as well. People with good credit history get faster loans. The applicant is then informed about the approved amount, the down payment he or she might have to make and any other options. A monthly installment rate (EMI) is fixed for the car. The used car auto loan term may start off from a year to 5-6 years according to the price of the car.
The principal amount and the interest are taken into account to calculate an equated monthly installment for the borrower. This rate might be decreased at a later stage if the borrower has access to extra cash and can make a higher payment per month to payback the loan faster. Once the full payment is made, the tile of the car is transferred to the borrower. Thus, automotive loans are an asset to buy a car.