Auto Loan Financing :: Bad Credit Auto Loan

Auto Loan Financing :: Bad Credit Auto Loan

Consumer Auto Loan is the best auto financing source on the Internet for an auto loan, bad credit auto loan, new or used auto loan with the largest nationwide network of auto loan lenders and certified auto credit dealers. If you need an auto loan for bad credit or bankruptcy, our auto loan specialists can provide a guaranteed bad credit auto loan with no money down. If you have good credit and are looking for the best auto loan rate, we can provide you with a free auto loan quote. No matter what your credit situation, the fastest and easiest way to get approved for a new or used auto loan or bad credit auto loan is our free online auto loan application.

We can offer a low rate auto loan in your state without you having to drive all over town. It doesn’t matter whether you need auto financing for a new or used car; Consumer Auto Loan guarantees the best rate for a bad credit auto loan. Take advantage of our free auto loan calculator so you can estimate your car payment. We also provide a complete detailed explanation of the auto loan approval process so you can be better informed and know exactly what to expect. Isn’t it time you experienced how fast and easy it is to get approved for your next auto loan?

Car Loan Tips and Information

Where To Find a Quality Auto Loan
Thursday, November 3rd, 2011

Well, you wish to have a car and you have rightly chosen an auto loan as your way out. Nevertheless, the question lingers as to where do you get an auto loan and where will you find the best deal? Several places exist and each with strengths and weaknesses. Whichever you choose will be a matter  of personal preference depending on your location, convenience and whoever will give you the best deal. Read More...

More Articles
Recent Articles on Auto Loans
  • Where To Find a Quality Auto Loan
  • Getting Approved For A Bad Credit Auto Loan
  • Understanding Auto Loan Refinance
  • Tips On Getting Your Bad Credit Auto Loans Approved
  • Bad Credit Auto Loan – Do Not Let Your Poor Credit Stress You
Top Auto Loans Cities
  • Hillside, NJ Auto Loan
  • San Francisco, CA Auto Loan
  • Chicago, IL Auto Loan
  • Portland, OR Auto Loan
  • Houston, TX Auto Loan
Testimonials
During my initial process of looking for a car, Consumer Auto Loan was able to get me approved for an auto loan within 48 hours. I recommend their services to anyone in search of an auto loan online.

J. Samuelson, Denver
Read more››

Why Choose Student Auto Loans?

It can be a difficult thing to digest for any parent that their college going kid wishes to get a new car on his/her own earned money. Some parents consider this a lost cause while others don’t want their children to go through the trouble and get the loan on their name and give their kids the vehicle. However, there are a number of benefits which the parents are depriving their children from by going for this type of thinking. The first benefit that they would deprive the children is from having the confidence and self belief that they can earn things for themselves which gives a great feeling for the future as well. Moreover, they also get to learn the discipline required to work part time and manage studies.

Another benefit is that the students get to mark a great start to their credit report which is going to favor well for them in their whole life. They get to learn what credit score is all about and why it should be maintained at a high level. Moreover, the high credit score would allow them to get all the future auto loans or other loans at a decent interest rate. Another benefit is that this would teach them good financial management for the whole of their life which is a beneficial situation for the parent as well as the applicant.

 

 

 

Why You Should Not Trust Every Auto Loan Out There

There are probably a few hundred auto loan companies in America alone and all of them seem to be offering something cheap, reliable and flexible. The real truth of the matter is that in the majority of cases this is not really what is happening. A good majority of companies that specialize in giving people an auto loan are interested in making a profit which can only be made if borrowers pay back. However they know that most borrowers are in a hurry to get an auto loan and show they slap on high interest rates and hidden charges all the while making everything look great via their websites and advertisements.

The best way to go about finding and getting a good auto loan is to take things one step at a time and never take the lender’s word for anything. The only way you are going to find out anything is if you browse through the lender’s website and especially at the terms and agreements section or speak to someone over the phone. Your job will be to find out if they are hidden charges and extra costs associated with these so called cheap loans. You will also need to compare what one company is offering with other similar companies if you really want to test if you are indeed getting a good deal.

When comparison shopping for an auto loan you also need to take into consideration the lender’s repayment plans and other similar policies. If you have average credit or below average credit you can find out what they are offering to people such as you by getting a quote from them. You can also chose to enter in your own credit information on which the quote will be based on instead of referring to the credit bureau; the reason behind this is simple as too many hits to the credit bureau within a fourteen day period can cause your credit to take a hit.

You should only sign up for an auto loan once you know exactly what you are getting and what it will cost you. You should also know how much more you will end up paying once you have finally paid off the auto loan which should tell you exactly how much the loan cost you.

 

Getting Auto Finance from People You Trust

If you were thinking about getting some extra money to pay for your car why not just go to your friends and family for an auto finance loan? If you know someone who has some cash to spare it would be more convenient to ask for help getting a car, and you can ask for a decent interest rate. You can have confidence in the person you trust and the only downside, here is that if you fail to do your part of the deal which is to pay back on the due date. Especially if it’s your friends who you owe, which could put problems in a relationship, and you don’t want some nasty rumor to spread about you being a thief. Auto finance sources have their pros and cons; while this method may be the most convenient it can also give you a really bad impression.

If you think about money the next thing that comes to your mind is a bank and banks also have auto finance deals that you could use to get a car. Banks are a lot more direct when applying for a loan, they put the entire thing you need to know about the deal upfront if you are qualified to get a loan. Also banks usually add free life insurance and disability insurance to sweeten the deal, and you can pick the rate which is suitable to your monthly income.

Calculations Involved In Auto Credit Financing

Auto credit leasing or personal contract purchase is the new entity in the lending community and transactions which allows borrowers to take a car for few years at very low monthly installments. The main talking point about this auto credit option is that the applicant can get finances for any car, get a new car after few years and still pay low monthly installments for it. If one hears it like this then it might seem a little hard to believe but the following mentioned example carries the calculations involved in leasing which can be read to see for sure.

For example, take the price of the car in the current scenario to be 1000 dollars. This is just taken as example to clarify the calculations. Let the loan term be a couple of years and the interest charged be 10 percent. When auto credit is taken, the yearly installment comes to 600 dollars every year because of the interest amount addition in the loan. However, in auto credit leasing, the lender or leaser calculates the price of the car after two years. It is calculated by checking the reduction rate of the car or depreciation factor. Let’s say that the car’s price drops to 700 dollars after two years. The depreciation factor is taken high but it is the case with many cars out there.

Now, the difference of the prices is 300 dollars and this is what is taken on auto credit. This means that by adding the interest the total money that the applicant has to pay back over the course of the loan is 360 dollars. One can easily see that the price of the total installment in auto credit leasing is less than what it is for simple auto credit for the first year. However, this thing should be noted that the applicant doesn’t retain the car and gives money just for driving it for few years.

The Benefits Of Auto Finance Via a Credit Union

When applying for auto finance there are a number of institutions that one can choose from and some prominent among them include banks, dealerships, private lenders and credit unions. Out of these credit unions are the least popular because of their membership criteria. These institutions charge some fee to gain their membership but the services provided are certainly worth the fee. Credit unions, basically, are a sort of public financial forum. This means that by gaining the membership the person is gaining access to all the financial help he/she requires.

One might have heard that banks and credit unions are the only places which can provide the best rate. As banks deal with a lot of saving accounts it is easier for them to get the finances that are required for lending but credit unions work differently. By providing the membership fee the applicant becomes a partner of the union and can access to all the loan and auto finance features. This means that if he/she were a person from the outside looking to get just the finances then it wouldn’t be possible because there is no such provision for anybody.

It is seen that a lot of the time the auto finance applicants spend their money on dealerships and brokers which are actually middlemen for credit unions and banks. By gaining the membership of credit union the applicant can access the auto finance as well as other lending options such as RV loan, boat loan, home loan, personal loan and even credit cards. The members are given the facility of checking and saving account at the start which means that the person is enjoying all the comforts that a bank could give. Hence, it is safe to say that credit unions are one of the best places where one can get lowest rates on auto finance features.

 

When To Take Up A Bad Credit Auto Loan

Taking up a bad credit auto loan is one the poorest and dumbest financial decision that you can ever make as an individual who is in need of fund to finance the purchase of a car but has bad credit. Taking up a bad credit auto loan is terrible decision; it becomes more dangerous and critical when you take up such a car loan at the wrong or in appropriate time.

Although taking up a bad credit auto loan is a very poor and dumb financial decision, the decision can become justified when an individual takes up a bad credit car loan at the most appropriate time. When it comes to taking up bad credit auto loans time is of the essence.

As an individual who wants to take up a bad credit auto loan it is recommended that, you should endeavor to put your credit misdemeanors in order before attempting to apply for a bad credit auto loan. Failure to do this could result to the rejection of your application for a bad credit auto loan.

Although it is recommended that, you should never take up a bad credit auto loan. I would however advocate that you should however resort to taking up a bad credit auto loan after you must have explored and exhausted all avenues for sourcing for the funds that you do need to finance the purchase of that car that you have always dreams. In essence, you are permitted to take up a bad credit auto loan after you might have run out of ideas on how to raise the funds that you need to finance the purchase of that car of yours.

 

Why Students Should Never Take Up Bad Credit Auto Financing Loans

As a college student, a lot is expected of you hence it is recommended that you should not take any hasty financial decisions that could affect your comfort and well being in the future adversely. Life as a college student is always challenging and difficult because chances are that there might be so many things that you might want but can’t afford because, they are beyond your means.

A car is often times one of the main luxury toys that most students cannot afford, being able to afford a car if often time very difficult for students because they often time have bad credits and are not qualified to take up auto financing loans. Although most students might resort to taking up bad credit auto financing loans. As a student, taking up a bad credit auto financing loan is one of the greatest financial mistakes that you can ever make.

For a student, taking up a bad auto financing loan is not such a wise idea because a bad credit auto financing loan is a sort of auto loan that is accompanied by high interest and stiff repayment terms and conditions. People who take up bad credit auto financing loans usually experience difficulties or challenges in meeting up with its repayment.

When it comes to financing students with auto financing loans, most auto loan lenders are usually excited because they usually benefit a lot from financing students with auto financing loans. Most auto lenders do enjoy financing students with auto financing loans because they stand to profit a lot from doing such.

The Five Options for Financing Auto Loans:

When applying for auto loan, there are various options; from getting the loan directly from the dealer to finding a lender who suits your needs online. Below are five different options; weigh your options and make a decision for yourself.

From the Dealer:

This is one of the popular ways for getting auto loan; contacting the dealer who wants to sell the car to you. The positive of this option is that it is possible to have a 0% financing at your own favorable terms. Although what one needs to understand is that generally many of us do not qualify for the financing of this kind and a lot of us end up paying higher interest amounts.

Online Lenders:

Finding online auto loan is one option that is getting popular. This method is one of the most popular, secure and easiest way to get your auto loan; also it provides maximum control. Once your finance is approved online, the company then provides you with a blank check which you would take to your dealer; you have more chances of negotiating as you would be buying the car on cash payment.

Neighborhood Banker:

Although in the present economy situation this might not be a good option but as we all have savings accounts with a bank right across the street, we must not forget even these banks provide loans. If you have a contact at the loan department of the bank, do try this option as they give charge low rate of interest.

Credit Unions:

Most of the time credit unions provide the cheapest auto loan. They pass the savings to their members as they have low cost of the fund. These unions charge a very small fee for you to be a part of it, so find a union around your area.

Buy Here Pay Here:

The buy here pay here dealer is the costliest way to get auto loan. These dealers make you pay a huge down payment and then ask for payments to be made weekly or in some cases bi-weekly. The interest rates are very high.

 

 

Other Requirements for Auto Loan Approval Part I

Almost everyone has heard that the credit score and the salary are the two most important requirements on which the auto loan approvals are based. However, there are some other obligations which the applicant has to fulfill to ensure that the approval process goes on without any hindrances. The basic obligation is to have a regular job which pays good enough money to see off the loan.

Another requirement is that the applicant should be at least over eighteen years of age (legal adult). Moreover, the applicant should be able to apply and pay for his/her insurance. The applicant shouldn’t have any intention of changing his/her nationality (and the country) during the term of the loan. These requirements are more important for the insurance than the loan but these are necessary nonetheless. Many lenders approve loans in which the insurance costs are also included and being unable to apply for insurance might result in rejection.

The applicant might have to provide the previous year’s tax forms for auto loan approval. This requirement is there to verify the income of the borrower. Self employed applicants have to provide the tax forms for the last two years. Hence, ensuring the fulfillment of aforementioned citizenship and tax requirements would provide the lender with good enough reasons to approve the auto loan.

 

 

 

Co-Signers in Bad Credit Auto Loans

To facilitate borrowers to finance their car purchase auto finance providers came up with bad credit auto loans. People with bad credit ratings were then able to apply for auto loans without worrying about their bad credit scores.

The scheme seemed to worked out well as it proved to be beneficial for both the borrowers and money lender as well. However, the biggest drawback of bad credit auto loan is the high interest rate and because of that sometimes borrowers started finding themselves incapable of coping with the bulky monthly installments that they had to pay without fail. Because of the high risk involved in bad credit auto loans it was necessary for the auto finance providers to provide loan at high rate of interest.

Now because of the high interest rate of the bad credit auto loans the bad credit raters have to think a lot before applying for it as it may worsen their credit position. To their rescue comes herein “co-signer”, a person who agrees to pay on behalf of the borrower in case the borrower defaults. If the borrower is able to bring such a co-signer a bad credit auto loan can be easily obtained at a low interest rate; provided that the co-signer has a good credit condition.

The co-signer’s credit worthiness will be seen by the auto finance provider just the way a borrower’s credit scores are seen to determine is the loan can be approved or not. Having a reliable co-signer can be a great help for people with bad credit ratings. Once the loan is obtained with the back up of a co-signer the borrower can carry on with the finance management and improve their credit scores as well.