Guaranteed Car Finance
Most of the auto loan lenders have set some minimum eligibility criteria. If you meet the same, you can easily avail guaranteed car finance. Most people have the misconception that having a good credit score is one of the criteria that is mandatory. True that many lenders prefer borrowers with a good credit history. But you will be happy to know that even if you have a poor or bad credit score, you can still find a good financing solution to purchase your dream car in the form of a no credit auto loan. These are the schemes that have been specially designed for people with bad or poor credit history. In this financing process, the lenders do not check your credit score. Let me give you brief insight into some of the important components of the eligibility criteria for guaranteed car loan.
A Car Finance Loans is simply a way for you to go about paying for the car that you are looking to purchase. You are going to take out a car loan from a financial lending company and bring it to the car dealership with you. The reason for going about doing this is because the moment that you bring your own Used Car Finance to a car dealership you are then considered what is known as any cash buyer in that you can buy the car pretty much out right from them just as if you are paying for it in cash in the first place. You can then you should car finance in order to either buy the car that you want from them or you can also use it to lease a car through them.
A guaranteed car credit deal, as the term implies, assures of approved car financing to clients who are currently employed UK residents and who make moderate down payments regardless of an individual’s credit history. In these cases, finance companies and dealers team up to finance loans that are usually too dicey for banks or other lending institutions to shoulder by themselves at reasonable rates and terms. Likewise, vehicles are assets that lenders can take legal action on, thus they agree to grant guaranteed car loans.
As usual, the rate you are offered will depend upon your credit history. If your credit history is bleak at best, then you can bet your quote will include an interest rate that is sky high upon “approval”, and be careful with that as well, because the rate advertised is not always the rate you will get. I’ve heard of some guaranteed car finance companies coming back with an interest rate as high as 15% and higher! That’s like credit card interest on a larger principal amount. Car finance rates are determined by the percentage or cost added onto the loan by the lender and the dealers get paid a commission on higher purchase deals and will try to charge a rate that is more beneficial to them, and not you.
You can get guaranteed car loans in spite of your bad credit from several online finance companies dealing in auto loans. The Internet has made it easy for you to check the websites of these car loan providers for applying online and receiving the approval in the same way. The websites of the car loan dealers will also show you the latest car stock quotes and you can order the car that you want online. Several guaranteed car loan packages are offered by online car loan providers for people with less than perfect credit.
It’s, however, prudent to go in for a simple interest loan for buying your car if your credit is not good so that your interest liability is only on the original principal amount of the loan. Moreover, you should ensure that your guaranteed car loan does not have any pre-payment penalties. This will make it easier for you to pay off the loan early by taking recourse to refinancing, without paying any penalty. You should also avoid taking a pre-computed auto loan as you would be liable for repaying the full principal balance along with the total interest over the entire period of the loan.
