Buying a Car: Cash or a Car Loan?

Cash vs. Car Loan - When you decide to buy a car, one of the main decisions that you will need to make is related to the mode of finance. You can buy a car with your cash or with a car loan. Learn why a car loan will be a better choice when you look at the bigger picture.

Do you have a substantial amount of savings? Or have you received a large amount of money in the form of a gift? Do you want to use to buy a car? Many people believe that buying a car with cash is a good thing because it helps them to avoid car loans.

What are the Benefits of Buying a Car with Cash?

·         You can get rid of making regular monthly payments.

·         You do not have to worry about obtaining low-interest rates.

·         You do not have to pay the interest rate for a depreciating asset (car).

·         You do not have to worry about repossession.

·         You can sell your car quickly.

There are multiple benefits of buying a car with cash. But, is it advisable to do so?

Should you buy a Car with Cash?

Buying a car with cash is an option for those car buyers who have cash. Today, an average new car costs $33,560 and an average used car costs $15,900. An average American doesn’t have that much cash in hand to buy a car. Even if you have cash available, you should consider obtaining a car loan.

Why consider a Car Loan for buying a Car?

It is advisable to assume the responsibility of a car loan because of the following reasons:

·   A Chance to buy a Better Car

Cars are expensive and if your funds can only allow you to buy an older car, you could end up with a high maintenance vehicle. On the other hand, you can use your money for making down payment and buy a new car. Also, remember that making down payment of a substantial amount will reduce your loan amount as well as the interest amount.

·   A Chance to improve your Credit Score

Even if you are capable of buying a new car with cash, it is advisable to opt for a car loan. The reason is simple. Buying a car with cash will have zero impact on your credit score. Alternatively, regular payments on your car loan will improve your credit score and enable you to qualify for better interest rates in the future.

·   A Chance to buy Any Other Thing

If you use your cash for buying a car, you will not be able to use it to buy any other important thing such as a house. Instead, you can put your money into a savings account and use it to make down payment while buying a house in the future.

·   A Chance to safeguard your Future

Instead of spending your cash on a depreciating asset like a car, you can invest it and safeguard your future. You can opt for long-term investment and obtain 6-8% returns. When you compare the returns to 3-4% interest rate on the car loan, you will realize that choosing a car loan is the lucrative option.

Car loans have a terrible reputation because people tend to misuse them. If you took care of the loan responsibly and made regular payments, you will realize that a car loan will benefit you and help you buy the car of your dream.

Remember to always look at the bigger picture!

All the best!

Fast Auto Loan Approval is the perfect choice for obtaining online auto loans. Trust the company for providing you with stress-free bad credit auto loans without down payment. Apply now. 

Auto Financing: What Cars are rejected by Lenders?

Rome was not built in a day.

Every perfect thing requires time. And, finding a perfect car requires a lot of time and patience because you have to find the right combination of beauty and technology. Won’t you feel irritated if lenders reject your car and all your hard work goes to waste?

Why will Lenders reject your Car?

If you want to buy your chosen car quickly, you must know about the kinds of cars that are rejected by lenders. It will help you in making a decision and ensure quick completion of the buying process.

Extremely Cheap Cars

Today, the car prices have become obnoxious because of rising inflation and increased government regulation. Finding a car that is within your budget can be a difficult task. But, if you manage to find an extremely cheap car, don’t think lenders will be happy. They will avoid financing because of the following reasons:

1. Cheap cars are damaged or totaled.

2. Usually, they are very old to function.

Also, lenders make a profit from the interest amount that you pay. If they approve a cheap car, they will not be able to generate enough profit from the interest amount. So, they avoid financing an extremely cheap car.

Extremely Old Cars

Old cars demand regular repair and require frequent maintenance trips to the mechanic’s garage. If you buy an extremely old car, you will have to spend a large part of your income on repair. It will make regular monthly payments difficult and also, increase the risk of missed payments. So, lenders will not support your decision of buying an extremely old car.

Remember that lenders do not provide financing for cars that are older than 8 years. They also prefer less than 100,000 miles on the odometer.

Extremely Expensive Car

Lenders have to consider the risk factor while approving your loan application. If they approve an expensive car and you do not make regular payments, they may incur loss. So, they shy away from financing an extremely expensive car because they know that it is unwise to put all eggs in one basket.

Antique Cars

If you are an antique collector and want to buy an antique car, you will face difficulty in acquiring it. Lenders do not fund an antique car because:

1. It is challenging to find its accurate market value.

2. In the event of repossession, it becomes difficult for lenders to sell it.

Race Cars

Racing is a risky sport and several cars are damaged during the racing events. If your race car is damaged and totaled, it will be very difficult for lenders to recover money from you. So, they do not approve such a high-risk asset.

Next time, you go for buying a car; remember that lenders will not provide financing for every car under the sun. Make a smart choice so that you will be able to obtain quick loan approval.

If you have found out your perfect car, Fast Auto Loan Approval will help you find a perfect low rate auto loan program with bad credit. Apply with the company and obtain best bad credit car financing quotes with no obligation.

Buying a car without a Valid Driver’s License - An Uphill task

Cruising the streets in a car is a dream of many. But, can you fulfill the dream without a driver's license? Can you buy a car without it?

The short answer is yes. It is not a crime to buy a car without a driver's license. Also, it is legal for a car buyer to obtain an auto loan without it. However, it is a different question altogether as to whether a lender will actually want to provide an auto loan to such a car buyer.

Why do Lenders shy away from providing Auto Loans without a Driver's License?

Lenders know that you are more likely to keep paying for a thing if you use it. And, you will not pay your loan if you cannot drive your car. So, they refrain from providing auto loans to car buyers without a driver's license. There are several other reasons such as:

1. Auto Insurance

Auto insurance protects the lenders in the event of an accident or a theft. They know that if your car is totaled or you do not have a car, you are unlikely to make payments. So, they require you to obtain an auto insurance policy.

If you do not have a valid driver's license, you won't be able to obtain an auto insurance policy. And, without an insurance policy, a lender will not approve your auto loan application.

2. Registration

State transport departments do not make driver's license compulsory for completing the car registration process. They accept any state-approved identification card. But, they require you to provide the details of your insurance policy before registering your car. And, obtaining auto insurance without a driver's license is impossible.

3. Suspension due to DUI

If your license has been suspended or revoked due to multiple DUI (Driving under Influence) convictions, you will not be able to register your car. And, as it is illegal to drive a car without proper registration, lender will not provide you with an auto loan.

There is an Exception to Every Rule

Lenders will provide auto loans without a license in few exceptional cases such as:

1. When an unlicensed minor wants to buy a car so that he/she can have a car ready as soon as he/she obtains the license. In such a situation, a parent can get an auto loan by becoming a co-signer and obtain insurance with the help of his/her license.

2. When a spouse who does not have a driver's license wants to buy a car for his/her partner, he/she can obtain auto loan approval if he/she fulfills the lender's requirements for becoming a co-signer.

Buying a car without a valid driver's license is a tricky task. If you are buying a car for someone else, it is justifiable. Avoid it if you are intending to use the car yourself.

Fast Auto Loan Approval is the best choice for obtaining your first car loan. It provides instant approval on zero down payment auto financing. Get in touch with the company’s representative by applying online today.

Drive away from ‘Devil’ Bad Credit in your New Car Today

Is Bad Credit the Devil that causes multiple obstacles in your car buying journey? Are you frustrated with constant car loan rejection? If buying a beautiful car is your dream, Fast Auto Loan Approval will not let bad credit ruin it.

Fast Auto Loan Approval – The Savior of People with Credit Issues

The online auto financing company has been serving American car buyers for the past several years. It has ample experience and adequate knowledge of finding you the best bad credit auto loan program.

Fast Auto Loan Approval doesn’t believe in conning innocent car buyers. It provides right information to ensure your total satisfaction. If you are looking for guaranteed auto loan approval, we suggest you to follow a few of the tips mentioned below:

• Manage down payment of at least ten percent of the total price of the car
• Bring a co-signer with good credit score
• Lower debts to reduce the risk
• Choose a low-cost car

Fast Auto Loan Approval is willing to help bad credit car buyers in buying a great car with a good auto loan. Apply now and get respite from bad credit forever.

Time to Celebrate! People with Low Income can buy a Car

In 2014, Americans purchased 16.5 million cars. It means that 45,205 cars were sold in a day. If you look at the astounding number of car sales, you will realize that everyone around you is buying cars. If you want to buy a car but are unable to do so because of your low income, there is no need to take help from a predatory buy-here-pay-here lender. There is hope for you.

Car Ownership Programs - A Silver Lining for People with Low Income

Non-profit organizations have started car ownership programs in the country for fulfilling the car dream of people with low income. If you become eligible for the program, the non-profit organizations will provide a free car or offer a grant for buying a car.

How to buy a Car with a Car Ownership Program?

Buying a car with the help of a car ownership program can be a strenuous task for a novice. In order to make it simple and stress-free, follow the steps mentioned below:

>> Find a non-profit organization that provides car ownership program in your area;

>> Check whether you fulfill the eligibility criteria of the program;

>> Keep your financial documents and bank statements ready; and

>> Write an essay soliciting your need for a car.

What should you do if you get rejected for a Car Ownership Program?

If a non-profit organization rejects your request for obtaining benefits under a car ownership program, do not worry. You can apply with an online auto financing who cater to your needs and offers low income auto loan program.

With the advent of the internet, competition has increased in the auto financing market. And, increased competition has compelled lenders and auto financing companies to open their doors to car buyers with low income.

How to obtain for Low Income Auto Loan Program?

In order to obtain low income auto loan program, follow the tips mentioned below:

1. Make Down Payment

When it comes to buying a car, people with low income take tension of down payment. But, you need not worry about it. There is no need of applying for an outrageous personal loan for managing down payment. Also, there is no need to opt for no down payment auto loan program. You can make use of your savings and put together money for down payment.

Remember that the down payment amount will lower the cost of the price, manifest the lender of your stable financial capacity and reduce interest rates.

2. Improve your Credit Score

Negative information stays on your credit report for several years. But, it does not mean that you have to suffer from bad credit score today. Here are a few tips that can help you improve your credit score and increase your loan approval chances:

1. Check your credit report;

2. Dispute all the errors that you find in the credit report;

3. Make payments and negotiate with creditors to remove the debt from your credit report; and

4. Pay your bills on time to ensure a stable payment history.

3. Get a Co-Signer

Lenders shy away from providing loans to people with low income because they fear the safety of their money. But, if you can manage to find a co-signer, the lender will be sure of getting regular payments. It is because a co-signer has the responsibility of making payments if you fail to do so.

Remember to ask someone with good credit history to become your co-signer because lenders do not accept a co-signer with bad credit history and higher debts.

Obtaining a low income auto loan program can be difficult for a car buyer. But it is important not to lose hope. If you can convince the lender of regular payments, there will be no problem in getting loan approval.

How to know if you can become a Co-Signer?

Help when you can help!

It is true that we must help those who are in need. But, you must remember that you can help others only when you are in a position to help. So, before agreeing to co-sign a car loan contract for a friend, a family member or a colleague, you must understand your financial situation and ascertain whether you are eligible to become a co-signer.

Can I Co-Sign a Car Loan Contract?

Even if you are eager to help someone in buying a car, you should consider the following factors before co-signing a car loan contract:

1. Credit Score

A good credit score is the pre-requisite for becoming a co-signer. If you have a bad credit score because of late payments, missed payments, bankruptcy, etc., lenders will consider you unfit for becoming a co-signer.

2. Debt-to-Income Ratio

Debt-to-income (DTI) ratio manifests the percentage of your gross monthly income that goes towards paying debts. A higher ratio ensures the lender that you have money to make payments if the primary borrower (the person whom you are co-signing for) misses them. So, it is very important to have a good DTI ratio for becoming a co-signer.

3. Future Purchase Plans

If you are thinking of buying a home or a car in the near future, you should not co-sign for a car loan contract. Potential lenders will consider it as your loan and include it in your total debt while calculating debt-to-income (DTI) ratio. It means your DTI ratio will reduce even when you have not actually purchased any new asset. Additionally, it will create a problem for you in opening a new line of credit.

What are the Consequences of Co-signing a Car Loan Contract?

It is a huge financial responsibility to become a co-signer for someone. So, before you make any commitments, it is important to understand the following consequences of co-signing a car loan contract:

1. Responsibility of a Car Loan Contract

When you co-sign a car loan contract, you become responsible for the loan. If the primary borrower dies, loses his job or doesn't make payments, you will be required to pay the total loan amount as well as the late payments fees that are charged by the lender.

2. Responsibility of Regular Payments

It is not mandatory for the lender to contact you and provide information about missed payments. But it is your responsibility to ensure that regular monthly payments are made to the lender.

3. Impact on Credit Reports

Many individuals ignore the impact that co-signing has on their credit reports. You must remember that the car loan contract will not only be visible on the primary borrower's credit report, but it will also appear on your credit report. Additionally, if the primary borrower does not make regular payments, it will affect your credit score negatively.

Bottom Line

Do not be in a hurry to help your friend or family member in buying a car. If you make a hasty decision of signing on the dotted line, you will end up ruining your credit score as well as your financial stability. So, understand your financial health and know your responsibilities as a co-signer to make an informed decision.

Fast Auto Loan Approval - A Trusted Name for Bad Credit Car Buyers

Fast Auto Loan Approval provides easy approval and simple loan process to bad credit car buyers. It is constantly working on providing a pleasant auto loan shopping experience to car buyers. Also, its efforts for making online loan process safe are commendable.

Auto loans have long been a stronghold for discrimination on the basis of a credit score.  But, there is one online auto financing company who has been helping bad credit car buyers in fulfilling their car dreams. Fast Auto Loan Approval is a name synonymous with bad credit auto loans. The company’s quick loan process and easy approval criteria are making it popular among credit seekers.

“Fast Auto Loan Approval has been one of those companies that believe in offering opportunities to people with not-so-good credit score. We became an online company to expand our customer-base and to ensure that everyone who needed an affordable bad credit loan got one,” informed Kaitlin Miller, the Business Development Head of Fast Auto Loan Approval.

The company has a team of enthusiastic professionals who work day and night to find the best auto loan quote for you. Its loan process is simple involving the customer or credit seeker to fill his/her requirements in an online form. Once the form is submitted, the team understands the requirements and starts working on finding the most-suited loan quote.

“Our online application form has made it simple for people with bad credit to obtain an auto loan. Now, they no longer have to wait in line for getting approval. Also, we have employed tight security measures such as valid SSL certification to ensure that your data is not getting misused by hackers,” added Miller.

If you have a very bad credit history, Fast Auto Loan Approval suggests few measures to ensure immediate loan approval. “If you have recently come out of bankruptcy or repossession, it is important to stabilize your financial condition before applying for a loan. It will help you in getting better rates. I would suggest you to make a down payment or get someone to co-sign your loan agreement. It always works,” Miller informed when asked about the chances of instant bad credit auto loan approval.

Fast Auto Loan Approval is a company that has customer welfare in mind. Its honest policy and hard-working attitude of employees make it the best choice for bad credit auto buyers of America.

Reduce Risk: Mantra for Car Loan with Social Security

Since 1974, the Supplemental Security Income (SSI) program has helped several blind, aged and disabled Americans. Today, the SSI program is a source of income to approximately eight million people of America.

Car lenders often have a problem in approving your loan request, if you receive income from SSI or any of the following sources:

>> Social security benefits

>> Disability income

>> Workers compensation

>> Unemployment benefits

>> Pension

>> Interest income

>> Cash from friends and relatives

Why do Lenders have a problem with People on Social Security?

Lenders categorize income in two parts:

Earned Income

You earn wages, net-earnings and other such incomes because of your job or business. Such income is considered earned income.

Unearned Income

SSI, compensation and other social security benefits that you receive without doing any work are considered unearned income.

Lenders believe that unearned income is unstable. It is possible that you may receive less income in future due to change in government policies. Also, the unearned income is necessary for your survival. It is usually inadequate to make regular monthly payments on a car loan.

So, if you have unearned income, lenders will not approve your car loan application easily.

How to get a Car Loan if you are on Social Security?

People with social security are considered risky borrowers. So, to get approved for a car loan, your goal must be to reduce the lender’s risk and ensure regular payments. Following are the ways in which you can fulfill your goal:

1. Income from Job

There are several factors that determine your loan approval. Earned income is one of them. If you are currently employed, you can ask the lender to consider your income from the job.

2. Duration of Employment

If your earned income is slightly lower than the lender’s minimum monthly income requirement, you can convince him of regular payments by providing a proof of your stable employment. Show your Employment Verification Letter to the lender as it includes the duration of your employment.

3. Inexpensive Car

Expensive car results in higher risk to a lender and lowers your chances of approval. So, it is important that you choose an inexpensive car. If you opt for a cheaper car, the loan amount will be reduced along with the lender’s risk. So, he will have no problem in approving your loan application.

4. Down Payment

Down payment is the upfront amount that you pay to the dealer. It will lower the loan amount and lender’s risk. Getting a car loan will become very easy if you can manage a down payment of at least ten percent of the total car price.

5. Co-Owner

A co-owner has the right of ownership as well as shares the responsibility of the car loan. You can ask your spouse or children to co-own the car. If anyone is willing to share your responsibility, lender’s risk will be reduced and you will have no problem in getting the loan.

6. Co-Signer

There is also the option of finding someone to co-sign your loan agreement. If you can find someone to assume the responsibility of regular payments, lenders will approve your loan application. But, remember that co-signer needs to have good credit score and lower debt-to-income ratio.

If a car is a necessity for you, it is important that you do not let anything to create an obstacle in getting a car loan. Social security is a boon for you. Follow the tips mentioned in this guide to ensure that it doesn’t become a bane for you.

No Credit Auto Loans - The Secret for Buying a Car without Established Credit History

The Birth of No Credit Auto Loans

Traditionally, young car buyers were considered extremely risky because they had no credit history. Lenders had no information to calculate the credit repaying ability of young buyers and so, they rejected their loan applications.

But, things changed with increasing competition. Lenders and online auto financing companies understood that they were losing a large segment of the market by avoiding people with no credit history. So, they introduced a special program called no credit auto loan.

Benefits of No Credit Auto Loans

If you are a young car buyer with no credit history and looking for a loan, you will have to apply for a no credit auto loan. The loan program is specially designed for car buyers without any substantial credit history. Following are the benefits of applying for the loan program:

You can buy a Car easily

Automobiles have become extremely expensive. A brand new automobile costs more than $30,000. Even a used car is available for more than $15,000. The higher price of cars has made loans indispensable.

Sadly, people with no credit history were not able to buy a car before the introduction of no credit auto loan. Today, the loan program is a boon for young car buyers because it provides them with a golden opportunity for buying the car of their dreams.

No more relying on Public Transport or Parents

No credit auto loan helps you buy the car of your choice. It means you don't have to spend time in waiting for crowded and unreliable public transport. Moreover, you won't have to convince your parents to let you drive their car. Total freedom, isn't it?

You can get Lower Interest Rates

Most young car buyers without any established credit history shy away from no credit auto loan. They believe that the loan program is expensive and out of their reach. But, the reality is different. You can get low-interest rates by making down payment and bringing a co-signer. Down payment reduces the loan amount and manifests your stable financial condition. And, a co-signer ensures the lender of regular payments. Both these things reduce the lender's risk and will definitely help you in reducing interest rates.

You can build your Credit Score quickly

To get a loan, you need a good credit history. But to build a good credit history, you need a loan.

It is common for lenders to check your credit score before approving your loan application. Previously, young car buyers faced the problem of loan rejection because of their inadequate credit history. But, no credit auto loan has solved this problem. Anyone with no credit history can get an auto loan at affordable rates and build their credit score.

It is a Better Option compared to Leasing

Leasing allows you to rent a car for a specific period of time. At the end of the lease contract, you have two options. You can return the car to the dealer or buy it from him. It means even after paying regularly for several months, you will have no right of ownership.

Such a problem will not occur if you obtain no credit auto loan. Every payment that you make will help you in becoming the owner of your car.

How to Get Started?

Now that you have understood the benefits of no credit auto loan, you must start the process of obtaining the loan program. The loan process is quite easy and can be completed online. You can take help of an online bad credit auto financing company and submit your loan application via internet.

All the Best! Hope you find the perfect no credit auto loan program for your perfect car!

Fast Auto Loan Approval for Faster Car Buying

Many people are buying cars today for two simple reasons: lower gas prices and lower interest rates. If you are looking to take advantage of these two things, you need Fast Auto Loan Approval. 

The company provides quick loan approval and ensures that you buy your dream car ASAP. Don’t worry if you are struggling with bad credit history. Fast Auto Loan Approval has experience of providing auto loan programs to people with bad credit score. It will find you the right loan that suits your budget and help you in improving your credit score.

Lower rates and faster approval make Fast Auto Loan Approval the preferred choice of American car buyers. Apply now and get ready for quick car loan quotes.

Zero Down Payment Auto Loans - A Non-Traditional Option for People with Zero Savings

Zero Savings? = No Loan!

This is the modern day mantra of most lenders. They require you to make down payment of at least 10% before approving your car loan application. But, it is not possible for every car buyer to save money for down payment.

What are your options when you have zero savings for making down payment?

It is okay if you have no cash or savings for making down payment. Here are a few options that can help you in your times of distress:

1. Trade-in or Sell your Car

If you have a car with equity in it, you can use it to reduce the loan amount of your new car. But, before you trade-in your old car, it is important to ascertain its selling price. If you can manage to get a higher selling price than the trade-in value offered by the dealer, it is profitable to sell your car. You can use the proceeds from the sale towards making down payment.

2. Manufacturers Incentives

Usually, manufacturers provide handsome cash incentives on new car models. You can select the car model with the highest incentive and use it to make down payment.

3. Zero Down Payment Auto Loans

Other than the above-mentioned options, there is one non-traditional alternative that doesn't require any car or incentive. The zero down payment auto loan program is a great option for the following people:

(1) Car buyers without any car to trade-in

(2) Used car buyers

(3) Buyers who have chosen new cars without cash incentives

Who can apply for Zero Down Payment Auto Loans?

The eligibility criteria for the loan program are uncomplicated. Anyone above 18 years of age and a valid SSN can apply. To obtain zero down payment auto loans, you must fulfill common lending requirements such as:

>> Stable employment

>> Regular income

>> No repossession in last one year

>> No open bankruptcy

>> Regular payment of utility bills

>> Lower debt-to-income ratio

Usually, lenders that provide zero down payment auto loans require your gross monthly income to be higher than $2,000. It is because the loan program is slightly expensive than the traditional auto loan programs.

Where can I apply for the Loan Program?

You will not be able to obtain zero down auto loans at traditional financial institutions like banks and credit unions. However, there are many auto dealers and online auto financing companies that believe in undertaking higher risks. Such dealerships and companies can help you with your loan application.

So, don’t wait anymore. Apply for zero down payment auto loans today and bring home your dream car without making down payment.