Finance Your Car By Comparing Auto Loan Rates
Even though having a new car is everybody's dream, yet, second hand or used cars are sold more in the market than new cars. Reason being the loan available for used cars will be lower as the price of the car will also be lesser in comparison to a new car. Used car loan financing options include comparing rates and applying online, via used car dealerships, or through banks.
The auto loan that will be provided will be based on the credit history of the customer. If the credit rating is good, then the dealer lending company might lower the interest rate as well as the monthly payment amount. However, customer with bad credit or no credit might have to shell out a higher interest rate and monthly instalment due to the risk involved on giving the loan though nowadays the facility of sub-prime loan is available for people with bad credit. Ensuring that your credit history shows a rising trend instead of a declining curve and improving your income to debt ratio will help secure guaranteed credit approval on car loan.
While you select the car of your choice after checking the model, MRP, mileage and other auto accessories you will also be faced with the dilemma of choosing the right personal car financing option. In today's market, there are three financing options available to the buyer's. They are:
* From a dealership which will be arranged by the auto manufacturer's own lending company.
* By leasing your car for a minimum three years via a leasing company where you will have to make your monthly payment on miles travelled per year.
* Cash payment for the car will allow you to avoid other processes involved in availing loan. All you will require to do to get your car is negotiate the price and then draw a cheque.
The system of providing loan to customers with bad credit is very much prevalent, however, another relation between bankruptcy and car loans has already been established. There are many car loan financing bankruptcy services which help people secure personal car financing loan. A pre-requisite for availing this option is improving ones credit rating a little and also providing accurate information to the car financing company so that there is no discrepancy regarding any fact when the lender is taking forward the process.
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ABOUT THE AUTHOR
Shelin Michel is a regular writer on Loansstore.com, a US based portal, which provides detailed information on car finance companies and other personal auto loan related issues.