Some Special Auto Loan Offers

Many recent surveys have shown that the economic depression’s impact on the lending industry has also severely damaged the auto industry. It is a known fact that more than sixty percent of the auto buyers do it on auto loan provisions which means that a reduction in lending industry clientele has a direct impact on the auto companies and manufacturers. Seeing this, auto manufacturers have started encouraging lenders to provide some offers and discounts on auto loan provisions so that more and more people are attracted to apply. Some of these offers include:

Student auto loan: it is a known fact that college students travel as much and even more than most of the working population out there. This signifies the fact that even after barring recreation, their need for a proper conveyance is lot more. Seeing this need, lenders have introduced student auto loan provisions for them at reduced interest rate. They know the fact that students get money from parents, work part time to earn or get grants but none of this is good enough to pay off loan installments. This means that they have to be provided less money at a less interest rate to ensure that they can pay off the loan successfully. It is quite good for the students too as they get to build up a good credit record when they haven’t even started working.

Moreover, these student loans earlier needed cosigners or down payments by parents for approval (due to the no credit record which made the applicant a financial risk). However, many lenders have started ignoring the no credit score criteria as they believe that the student would get a loan from somewhere. Moreover, many also don’t require a cosigner but it is best if one can provide some assurance that the loan will be repaid one way or the other.

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