Guaranteed Auto Financing Vs. Bad Credit Auto Loans
Guaranteed auto financing is used to refer to financing that does not have to do with a credit check. Instead of having a credit check, these financing dealers would have to determine what you qualify for based on income. It’s described as the best possible option for most people that are in dire need of a vehicle while struggling with their credit check. Though tempting, t’s advised you take caution! Most times, these financing dealers have minimum requirements that would determine your eligibility. You’ll need to be sure you qualify for the loan based on current employment and income level.
At Car Loans Of America, we do not offer car loans; neither do we guarantee people that their car loans will be approved. It’s important that you take this to heart as most times, people have misjudged our services. Our goal is to connect you to local financing dealers that have the right resources available. This is to ensure that buyers are being assisted in each of their unique credit situations.
Unknown to most people, we have helped hundreds, if not thousands of people. We have been in operation for over twenty years. In that period of time, we have offered assistance to car buyers that have; no credit, bad credit, as well as those that have other credit issues. We have helped regardless of the type of credit issue they have. This is done in order to find dealers capable and willing to work with them. In that period of time, we have also connected these car buyers to financing dealers that are willing and also able to offer guaranteed auto loans.
Guaranteed Auto Financing; Does It Exist?
Unknown to most people, guaranteed auto financing exists! And, most people have benefited immensely from it in the last couple of years. The guaranteed auto loan is offered by internal financing dealers. They do not have to rely necessarily on your credit history or record before they approve loans for you. What they do is that they use your present Income to determine if you are able to afford any of the car payment options they have.
The idea behind guaranteed auto financing is it’s designed for those that have no credit or bad credit. These financing dealers do not have to go through your credit history before they approve a loan for you. While these financing dealers do not have to go through your credit history, it is important that you remember that there are other requirements that you would have to meet before the loan is approved.
First, you will need to have a minimum income level. That would be stipulated by the dealer based on the type of plan you are opting for. The second requirement is that you need to make a down payment and also provide the dealer with genuine documents. Often times, these documents are; a valid driver’s license and proof of income. These documents are needed to ensure that you do not lie about your earnings.
Driving Home in the Vehicle You Want
When you visit the office of guaranteed auto loan dealers, there’s a chance you’ll drive home in a vehicle the same day. For this to happen, you need to qualify for loans based on your revenue. You’ll then need to make a down payment, and need to be in possession of the necessary documents. When you opt for this type of auto financing, the car you get is probably an older model or a used car. You will be made to pay a higher interest rate than what you would ordinarily pay when you get a loan from any of the subprime lenders.
One thing most people do not know about the guaranteed financing is that since they do not have to go through your credit history before your loan is approved, it means that there’s a higher chance the loan and down payment you made to the financing dealer will not be recorded in the records of the NCB (National Credit Bureau).
What You Need To Have Your Guaranteed Auto Financing Loan Approved
The guaranteed auto loan is probably the best options for those seeking to buy cars as fast as possible. While most people may not be aware, you can lay your hands on this financing loan if you contact in-house financing dealers that are otherwise called “buy here, pay here”. Unlike most of the other loans where the financing dealers would have to take a closer and proper look at your credit history before they approve your loan, the auto financing dealer will simply have to look at income & also your current employment position to determine if you are eligible for a guaranteed car loan. Although the income may vary depending on a number of factors, most of the in-house financing dealers lookout for those with income level or structure of about $1,500 to $2,000 each month right before they file their taxes.
Proof of Income
To ensure that you qualify for this loan, you will need to provide the financing dealer with proof of income document as well as that of your employment. This will contain your paycheck. Aside from these documents, you will be asked to make a down payment. While the amount of you may be asked to pay will vary depending on nature and stated requirements of the in-house financing dealer, it is advised that you expect a minimum down payment of about $1,000.
You may be asked to make a down payment of 10% of the selling price of the vehicle you wish to take home. The in-house financing dealer will have to choose between 10% of the selling price of the car or $1,000. They will go for anyone that is lower. For example, if 10% of the selling car is $1,200, the dealer will have to settle for $1,000 as the amount you are to pay before you qualify for the car loan.
Proof of Residence
You may be asked by the in-house financing dealer to provide proof of residence alongside a bill recently paid. Depending on the in-house financing dealer, you might be asked for more documents than what is mentioned. The requirements mentioned here are basic ones you’ll need if you qualify for a car loan irrespective of in-house financing dealers you decide on. The best idea would be for you to contact your desired guaranteed financing dealer. This can be done through their website right before you visit their office. This will enable you to find out what you’ll be needing right before you make that visit.
In a nutshell, for you to qualify for a guaranteed auto loan, you will need to have the following:
- A proof of your employment and income with your paycheck stub written on it
- You will need to present a valid driver’s license to the in-house financing dealer.
- Your income level would be carefully looked at.
- Present your proof of residence and a receipt of a bill just paid
- Finally, you will need to make a down payment
No Money Down On Guaranteed Auto Loan
While most dealers would offer you car loans with no cash down, it’s important that you remember they may not be guaranteed. Most times, guaranteed auto loans are carried out in-house. And, over 95% of auto financing dealers will require you to make a down payment before you drive home. The chances of you finding guaranteed auto loans without a down payment is quite low. It is part of the main process that allows these in-house financing dealers to approve your car loan.
The amount of money you are expected to put down will depend on the requirements of the financing dealer. Also, the selling price of the vehicle in question.
Though difficult to see, there is a way car buyers can get a guaranteed auto financing loan without down payments. Car buyers with vehicles that either have equity or have been paid off can have these vehicles traded-in. Then, apply the value of the vehicle as a down payment for a guaranteed auto financing loan. Most car dealers are oftentimes happy when offered trade-ins as a down payment. This process offers the opportunity to meet the requirements for a down payment without having to use your own money.
Before you make decisions, it’s advised that you carefully weigh all options and ask the right questions. This will enable you to determine the type of offer the financing dealer has in store.
Getting a Car Loan Without a Down Payment
When it comes to guaranteed auto financing loans, it is important that you remember that this is the only way you can get a car loan without making a down payment. Remember, that most lenders accept down payments right before the loan is approved. As mentioned above, not all financing dealers offer you the opportunity to carry out trade-ins. It’s important that you ask the car dealership right before the transaction.
Know that the value of the car would have to be up to the stipulated down payment amount if your loan is approved. This means that if the value of the car is less than the down payment fee, you will need to use your cash to complete it.
For example, if the stipulated down payment amount is $1,000 and your car is valued at $800, you will have to balance the in-house financing dealer the sum of $200 right before your loan is approved.
Like other options where you pay cash, you can leave with your car when you visit the office of in-house financing dealers. This is as long as the value of your car is exactly the same as the down payment charge and necessary documents available. Do well to ask these questions before heading to the office of a guaranteed auto financing dealer. This will fasten the process and ensure that you get your car as soon as possible.
Auto Financing Dealerships That Are Near You
While we agree that it could be difficult to get guaranteed auto financing dealers close to your residence, the problem is that how do you identify the difference between a dealer that offers car buyers in-house financing and those that don’t. Instead of spending time calling and asking car dealers questions, we at Car Loans Of America can help you out.
Our main aim at Car Loans Of America is to ensure that you and others in need of cars are able to get the right financing. This is one of the main reasons we’ve partnered with top car dealers throughout the country, including those that offer car buyers guaranteed auto financing. We are capable of helping you find an amazing car dealer! Whether you’re trying to weigh the pros and cons of leasing a car or how an auto loan works. We’re here to help!
If you’ve been searching for a guaranteed auto financing dealer for a long time, then look no further! All you would have to do now is fill out our loan request form and submit. We then immediately get to work and match you with a car dealer that offers guaranteed auto financing.