Tuesday, July 31, 2012

No Money Down Auto Loans for Bad Credit Borrowers - Tips to Get Approved

As cars are becoming a necessity for us, the importance of auto loans is rising. When someone applies for a car loan, it's obvious that he has no ready cash for buying the car. This means making a down payment also becomes difficult. The good news is that you can avoid money down by opting for no down payment car loans. This car financing program is perfect for everyone including people with bad credit.

Is it Possible to get No Money Down Auto Financing with Bad Credit?

Yes. You can easily get approved for zero down auto loans with poor credit. All you need to do is ensure the lender of his financial investments. If he considers you a less risky credit borrower, instant approval and guaranteed low rates will be a reality for you.

How to get Guaranteed Approval on No Down Payment Auto Loans for Bad Credit?

These tips will help you get easy approval no down car loans. Bad credit will cease to be a problem when you follow these suggestions. Try and use the maximum of them to enjoy low rates and lower car loan cost.

A co-signer lowers the risk factor. It is because the lender knows that he can recover his money if you stop making payments. So, start your search for a co-signer today.

Income Proof 
Having sufficient income to pay-off car loan is one of the important criteria. You can show your pay-stubs or tax returns as income proof. This way lender will be sure of your regular income and also, regular payments.

Inexpensive Car 
Choosing an inexpensive car means reducing your car loan amount. And with the reduction in loan amount, lender's risk also reduces. This way your approval chances become brighter.

Trade-Ins and Rebates 
You can avoid down payment by trading your old car. Ask the dealer to deduct the value of your old car from the auto loan amount and forget putting money down. You can also make use of rebates for the same purpose.

Shorter Loan Term 
If you opt for a shorter loan term, it means you will be able to pay-off the loan before the end of useful car life. This is perfect for everyone because the risk of upside down auto loans reduces substantially.

Choosing the Lender 
You certainly don't want to waste your time in applying with lenders who won't offer you loans. So, start your research for lenders who offer no down car financing programs to individuals with bad credit ratings.

You can make use of internet for searching sub-prime lenders. They work with bad credit borrowers and have no trouble in providing car loans without down payment.

You can select a reputed online car financing company for loans. They have a huge network of lenders and dealers which makes it easy for them to guarantee quick approval. Don't forget to check the reputation of the lender/auto financing company before filling the application form.

All these tips will definitely help you in securing no down payment auto loans. When you follow them, it will make your car loan application stronger and lenders will be compelled to look beyond your credit score. So, don't forget them during the car financing process.

Tuesday, July 10, 2012

How Military Personnel Can Get Car Loans

One of the first decisions that most new young service members make after graduating military basic training is to go out and buy a new vehicle. For most of them, this is the first time in their lives that they've had a steady job with a guaranteed paycheck and benefits. Many of them have not had sufficient training on how to properly manage their money or how to write out an appropriate budget based on the amount of money they have coming in and going out each month.

Most car dealerships enjoy dealing with military service members because service members are typically reliable at paying their debts, especially recurring ones since almost all service members get paid via direct deposit on the first and fifteenth of every month.

The way that dealerships make a significant amount of money with some of these young men and women is by charging them higher than average interest rates. Many times, the dealership will say that the servicemember is a higher risk customer in order to justify this higher interest rate. Legally, the dealership could be accurate by saying this, since many of these young men and women have never applied for credit before, and typically have very little, to no credit history at all. This is what allows the dealerships to charge a higher interest rate, and be legally justified in doing so.

Many young men and women are not informed enough to be aware that they have the ability to negotiate the interest rate down to something that is more affordable and reasonable.

A good way to find out what an appropriate interest rate would be is to go to a few websites of well known financial institutions. A simple google search will turn up several reputable banks that offer automobile financing. Get an idea of what some of their average rates are. If you walk in to a car dealership and they are trying to charge you three to five times higher than the average rates you found online, then you should seriously consider either negotiating that rate lower, or maybe even attempt to get your financing through one of the more reputable financial institutions you found online. Another advisable option would be to go to another dealership and take your business elsewhere.

Many times, U S A A or other Service Based Financial Institutions such as Navy Fed or Marine Fed will offer extremely affordable interest rates to service members looking to buy new or used vehicles. Often times they will also have incentive programs and rebate offers available that far surpass what is offered to non-members or civilians. Dealerships also often offer at least $500 rebates to service members.

Purchasing a new vehicle and deciding on financing options are two very major decisions, and not ones that should be taken lightly. As with all significant decisions, it's important to do your research and ensure you are making an informed decision that will pay off for you in the long run.