Any Credit Used Car Financing
With the expansion of the car market to unprecedented ends, car buyers everywhere try to obtain the means to purchase one of their own. Prices within a range of $20.000 for a new car and about $9.500 for a used car, obliges us to find different means to fund our investment.
Most of the times people go for the most obvious solution: they go and get a loan form a credit union, or a bank or any other type of financing company. By doing so the buyers consents that he will pay the sum that was loaned plus an finance charge over a period of time established by the financing company. For the car, the buyer simply goes to the dealership and pays for the car with the amount loaned. This exchange can even be made online but with a bit more risk, since you, as a customer don’t get to test the car.
Another common type of obtaining finance is the dealership financing that takes place at a dealership. In this case the buyer makes a contract with the dealership over an amount if money loaned for which the buyer agrees to pay over a period of time and of course, an agreed upon a finance charge. There are a couple of advantages in the dealership financing technique as: convenience where a buyer may get a vehicle and a loan in the same place. The dealership is usually connected to several banks and credit unions therefore providing the customer with various offers for financing. And last but not least, special programs where some dealerships may offer special discounts on some models of cars.
There are a couple of things you would want to do before you arrive at a dealership. First of all get a copy credit report. This is a definite requirement so that you may know what the possible creditors will be seeing. Errors may happen from time to time and because that you may loose the chance to get a loan, or in case you do get a loan, the monthly payment may be unsatisfactory.
Know exactly what are you going to use the car for, look for the kind of model that suits you best and most importantly that it meets your transportation needs. Do some research regarding the car you are going to buy. Get info from the internet, other dealerships, even consider looking up some auto buying guides. Compare the offers that are given to you from the dealership with other offers you may consider, banks credit unions, financing companies or other possible finance locations.
Always look for your APR (annual percentage rate ) because the credit history you have, or the current finance offers, the competition between companies, credit unions and banks, market fluctuations and conditions, all these can affect your APR making it rise or drop from year to year.
In case you’ve had some problems with your credit history, you may be allowed by some credit companies to bring a co-signer. What exactly is a co-signer? A co-signer is a person that you may bring with you and he may assume a certain amount of responsibility for the contract. This is a form of “insurance” for the financing company that they will not loose their loan, therefore in case you as a loaner, are unable to pay for the loan, the co-signer of the contract will be forced to pay for a part of the total loan, or even the entire one.
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