How to make use of a Co-Signer and Purchase Your Next Car?

Car shopping is a tedious process. After a long round of shopping at various dealerships, you finally find a set of wheels that is soothing to your eyes and wallet. However, the previously affordable car suddenly seems costly when you move ahead for an auto loan; and the lender pulls out your credit history and finds it unsatisfactory. Your credit is not up to the mark, which means you pay a higher interest rate. What should you do in such a situation? A co-signer will help you when your credit score is not strong enough to get a better interest rate.

A co-signer steps in when you have a bad credit/no credit history and a lender is hesitant to provide you with an auto loan. If you miss out on any payments of the auto loan, your co-signer will cover it. He is very useful for bad credit car buyers and people who are relatively new to auto loans like college-going students or immigrants.

Benefits of having a Co-Signer for your Auto Loan

The following points explain how a co-signer is beneficial in more ways than one:

1. Savings in Terms of Low-Interest Rates

A co-signer is someone who has a splendid credit score and financial history. He agrees to make payments if the primary car buyer misses out on them. You can get great interest rates with a co-signer by your side during the auto loan process. A bad credit car buyer will typically pay double the interest rate than an average car buyer. The savings that come from a low-interest rate can be helpful. You can invest the money in something else of more value. Therefore, savings through low-interest rates are possible with the help of a co-signer while you purchase your next car.

2. Faster Auto Loan Approval

A lender will show more interest and consider you with greater importance if you have a co-signer for your auto loan. He increases your creditworthiness in the eyes of the lender. The bad credit buyers can benefit as a lender is banking on the co-signer to ensure that the payments on time. Therefore, there is a chance that your auto loan will receive faster approval with the presence of a co-signer.

3. Boon for First-Time Auto Buyers

A co-signer helps a first-time car buyer or a person with no credit history in building their financial future. Any first-time car buyer, such as a college-going student, is burdened with student loans. A student’s debt-to-income ratio is imbalanced due to little or no income. A parent or relative can save many years of interest rates when they co-sign for their child. Additionally, first-time auto buyers can also obtain great incentives with the help of a co-signer.

Keep your Co-Signer’s Trust; Make Regular Payments

Your co-signer not only takes a financial bullet for you but also keeps your credit score in check. A co-signer trusts you to make your payments, so make sure you do not break his trust. Overall, a co-signer is a golden star that will earn you brownie points when you go to close your auto loan deal.

Did you know young college students often face difficulty in getting a co-signer? Opt for no cosigner auto financing options from a lender near you. Seek help from a reputed auto financing company to get first time car buyer’s program.

Why putting Money Down is Good for People with Bad Credit

A down payment is your best friend if you have a bad credit history and want to purchase a car. Usually, people see down payment as just another process to obtain an auto loan, but it is much more than that. Down payment will help you to save money in numerous different ways. Understand the different reasons why putting money down will benefit you. It will help you to better prepare for your next auto loan.

Here's how you can take maximum advantage of the down payment amount if you suffer from bad credit.

1. Catalyst in Auto Loan Approvals

A down payment acts as a catalyst in the auto loan approval process. When you put money down, it shows the auto lender that you are trustworthy and you are serious about your financial situation. The amount you borrow significantly decreases as you make a down payment which means less risk for the lender. Therefore, for credit-challenged individuals, if the lender is second-guessing to approve your auto loan, a large down payment of 20% of the total amount will make it easy for him to trust you and give you a faster car loan approval.

2. Interest Savings

Down payment means that a certain amount of the car price is already paid off. The interest rate will only be calculated on the remnant car loan amount. Therefore, you save a lot of money in terms of interest savings. You can invest that money in something else such as your mortgage or add it to your savings. Bad credit individuals can also get good interest rates if you back your auto loan with strong financial proofs such as a consistent income source, stable employment source, and a co-signer.

3. Helps with Offsetting Car Depreciation

Cars lose value over time. The minute you drive off the dealership, your car will start to depreciate. However, putting money down can help you to certain extend to fill the gap between what your car is worth against the amount you owe for your car. As a result of a large down payment, bad credit car buyers will also face less negative equity. Therefore, a decent down payment will help you to offset the initial hit of your car depreciation. This will also help you with good resale value in the long run.

Down Payment: A Must for Bad Credit Car Buyers

A down payment is usually non-negotiable when it comes to people with bad credit. However, putting money down has many advantages that will help you in the long run. You can trade-in your old car and pay for a down payment. Make sure the amount you use for the down payment is earned and not borrowed from another personal loan. In the end, look for bad credit lenders and work your way to a "good" auto loan deal by putting money down.

A down payment is essential to obtain a good auto loan with decent interest rates. However, everyone can't manage the down payment amount. If you are a bad credit car buyer without a down payment, do not worry. Apply now to get quick approval on no money down auto loans. Pre-approved car financing is available!

The Do’s and Don’ts when buying a Car with Bad Credit

Bad credit is surely a mistake of your past. But you can stop it from affecting your future. Purchasing a new car or a used car is possible with bad credit, provided you understand the auto buying process. Bad credit history may make you a less preferred credit borrower. But bad credit is not the end of your world. If you take care of a few things, you can get an auto loan even with bad credit. All you have to do is to understand the “do's” and “don'ts” of bad credit car buying. 

Things to Keep in Mind while Buying a Car with Bad Credit

 

The following list of things will help you to put across a strong case in obtaining a car when you suffer from bad credit. 

A. The Do’s of Bad Credit Car Buying 

i). Do Take Actions to Increase Your Credit Score

The primary element that comprises an auto loan approval is a good credit score. While you cannot change your financial history, you can surely put effort into improving your credit score before applying for the auto loan. A few things you can do to increase your credit score is to pay off your lenders and pay your bills on time. An increase in your credit score will positively impact your auto loan approval chances. 

ii) Do Get a Co-Signer

A co-signer is liable to pay any amount of the auto loan that you are unable to pay to the lender. A co-signer can be your spouse, family member, or friend. In the case of bad credit history, a co-signer with a decent credit score of 630 or above will improve your chances of getting an auto loan approval. Therefore, do ensure that you have a co-signer on your side when you go to finalize your auto loan. 

iii) Do Think About a Second Chance Auto Loan

Everyone deserves a reliable car to travel from one place to another but not everyone has a good credit score to obtain the car. Does that mean a person with bad credit should not buy a car? Well, you can choose second chance auto loans. They are designed for people who have suffered from bad credit history and wish to obtain an auto loan. The interest rates may be higher but you can negotiate with the lender to obtain affordable financing. Remember that a second chance auto loan is a great way to obtain your dream car and not compromise on your mode of transport. 

B. The Don’ts of Bad Credit Car Buying 

i) Don’t Overshoot Your Budget with Extras

Once you walk into the dealership, do not get distracted and agree to the sweet talks of the salesperson. Your primary focus is to obtain a car and car financing for bad credit. Do not focus on other fancy offers which are dead investments in the long run. Be informed about your warranties, GAP insurance, and auto loan terms and conditions. Sit down with the salesperson and match your budget with the car that you can afford. A used car that is a year old can be the place to start looking for an affordable car. 

ii) Don’t Skip a Pre-approved Auto Loan

A pre-approved auto loan will make your bad credit car buying experience very pleasant. It tells you how much money you can afford to spend on a car. You can also negotiate for a lower car price as you already have a pre-approved car loan. Therefore, apply for a pre-approved car loan and take the help of a co-signer to obtain the best auto loan deal. 

iii) Don’t Finalize the Car in a Rush

Take your sweet time when you are finalizing your auto loan and choosing your car. Make sure you research all cars that fit your requirements and shop around the dealerships to search for the right deal and the right car. Read all the documents carefully before signing your auto loan contract. Many times, bad credit auto buyers may be tempted to just get a good car but not read about the underlying charges. Therefore, make sure to understand all the factors of a bad credit auto loan before purchasing your car.

Follow the Plan

Buying a car with bad credit is easy when you have a plan in mind. Do not say yes to any lender who approves you. Research in advance, find out more about the auto financing company, discuss your requirements, and calculate the total cost of the loan. Being diligent is the only way to get the best auto loan deal with bad credit. 

Do you want to buy a car with bad credit? Do not worry about bad credit auto financing! Pick a reliable lender to help you make the purchase. Whether it is a bad credit score or a zero credit history, pre-approved auto loans are a reality for everyone.

Covid-19 and Car Buying: The Near Future of Car Buying Amidst Coronavirus

The spread of Covid-19 has shaken everyone and every industry. As you are now within the safety of your home, it is a good idea to think of the next step in your car buying process. 

Due to the uncertainty of new car productions and a compromised distribution channel, the auto industry is set to go into certain changes. However, it cannot stop you from planning the purchase of your car once things return to normal. As you are now within the safety of your home, it is a great time to think of the next step in your car buying process. 

How to plan your Car Buying Process amidst the Coronavirus Scare? 

The following points will help you to assess the situation and take your next step towards car buying. 

1. Personal Cars are a Safer Bet

The complete shutdown that was caused due to Covid-19 will not be resumed all at once. A gradual reopening of outlets, schools, and offices will take place. As public gatherings will not be favorable, people will hesitate to use public transportation. Therefore, it is a safer bet to rely on your own personal car to commute. You may be purchasing a car for your necessity, however, post the Covid-19 purchasing a car will also act as your safety net. 

2. Make Optimal Use of Online Auto Dealers

The quarantine is the best time to check what you need to improve before applying for an auto loan. As auto dealerships are not inviting customer visits, it is a good idea to make use of online auto dealers. You can get your free credit score report, understand how much you can comfortably pay on the basis of your income and avail an auto loan. Online auto dealers will help you to get the best value for your vehicle and also help you with auto financing. 

3. Inexpensive Cars for the Win

Researching before purchasing your car is a great way to avoid last-minute confusion. The better option between a luxury car and an inexpensive car would be the latter. The world economy is quite uncertain without reassurance as to when things will return to normal. Therefore, it is a smarter option to choose a car that facilitates all your needs and is lighter on your wallet as well. A great step to take towards your auto financial safety is to get a pre-approved auto loan in your quarantine. 

Be Prepared for the Road Ahead

The Covid-19 pandemic has caused distress and uncertainty for those willing to purchase a car. Many dealerships are practicing social distancing, regularly sanitizing their showrooms, and limiting customer walk-ins. However, the near future manifests a greater inclination towards online car shopping and online auto financing. Therefore, practice social distancing and stay safe until you can buy your next car in a world that is safe. 

Make car buying effortless in the times of Covid-19. Apply for pre-approved auto loans and buy a car as soon as the dealerships open in your area. Choose a reputed online auto financing company for faster, cheaper auto loans for bad credit car buyers.

Important Elements That Matter When Buying a Used Car

Purchasing a used car is similar to searching for a treasure. You may find many used car deals in the market. However, you need to narrow down your car shopping to the ones that will benefit you in the long run. One of the important factors during used car hunting is the age of the vehicle. Understanding the important factors that make or break a used car deal will help you to figure out if you should take the plunge to buy a used car or wait for a newer model. 

Complete Break Down of Elements that Make or Break a Used Car Deal

 

1. Age of the Car

Over the years of usage, cars lose value through depreciation. Your aim should be to purchase a car with a low depreciation rate so that its value will not depreciate significantly in the near future. But, make sure to avoid buying a very old car because it may end up at the mechanic's shop more frequently. Most lenders avoid financing a used car that's older than nine years because as the years increase, the cost of maintenance also rises. So, it is wise to choose a used car but do not go for a very old one. 

2. Odometer Reading

The mileage is a maker or breaker when purchasing a used vehicle. The car's average miles driven per year is 12,000 approximately. Usually, lenders prefer a used car to be driven below 100,000 miles. In the case that the car that you wish to buy has been driven for more miles according to the odometer, it is wise to further inquire and seek more details. Ask if the car was regularly maintained while the car was driven the extra miles. However, if the car is in good condition, well maintained and the mileage is a little above average, you should purchase the used car without any worry. 

3. No Modifications

Ensure that the used car that you have narrowed down to purchase is not modified in any manner. Any modification performed on the used car can compromise the performance of the vehicle. For instance, if the engine is modified by the previous owner and if it strains the car, it may break down sooner than expected. Usually, modifications do not carry any warranties and the parts cannot be replaced. Therefore, make sure you raise proper questions about modifications before you agree upon the auto deal. 

Buy a Used Car but with Caution

Purchasing a used car is light on the pocket as compared to a new car. Make sure that you get the used car checked by a mechanic before making the purchase. You can also use the Vehicle Identification Number to receive an instant report on the make, model and year of manufacture of the car. A vehicle report will also give a true picture of the current condition of the vehicle. On the basis of the information, you can decide whether to purchase the used car or shop for another one. Therefore, keep in mind the essential details before saying yes to a used car.

Do you want to buy a used car? Do not shy away from applying for pre-approved used car loans online. Apply now to get instant bad credit auto financing. Get in touch today.

Bad Credit Car Buyer? Understand the Pros and Cons of making a Down Payment

Down payment is a huge factor for getting an auto loan. When you apply for an auto loan, it is important to ascertain the advantages and disadvantages of putting money down. Your down payment will determine the interest rate of your auto loan as well as the amount of your monthly payment. However, when you are suffering from a bad credit history, understanding the pros and cons of putting money down becomes even more essential. It is because your auto loan can make or break your credit score.

The Consequences of Down Payment for a Bad Credit Car Buyer

The following are the pros of putting money down especially when you are buying a car with bad credit. 

1. Reduced Loan Burden

An auto loan has a certain amount fixed along with the interest rate. A large down payment helps in reducing the amount of auto loan that you borrow. It helps you in building a strong financial future as well as offers you the chance to pay lower monthly payments. A good down payment will not only reduce your auto loan burden but will also save you from the tension of expensive monthly payments. Therefore, if you are suffering from bad credit, a big down payment amount will help you to make easy payments towards your auto loan. 

2. Less Interest Rates

The difference between people with good credit and people with bad credit is the interest-amount that people with good credit save. A large down payment will help to bring down the interest rates on your car loan. If you have suffered from a bad credit history, a down payment will help you negotiate lower interest rates. Eventually, you will be saving a huge amount of money in the long run that you can invest elsewhere. 

3. Improve Auto Loan Approval Chances

Apart from your credit score, income, job stability and your debt-to-income ratio are key factors that determine whether you will get approval for an auto loan. A down payment cannot offset the damage to a bad credit individual. However, someone with a poor down payment amount or no down payment is seen as more of a risk compared to an individual who is making a huge down payment. Additionally, if you have a stable job for the past couple of months, it will be a good indicator for an auto loan approval. 

Cons: Inability to Cover a Large Down Payment

The only problem with making a down payment is that you need to have money for it. Bad credit can occur due to missing out on payments, late payments or even bankruptcy. And often, people with a bad credit history may not have the money to make a large down payment. Also, obtaining a personal loan for making a down payment may attract exorbitant rates. And even if you make a down payment, your savings will be depleted and it will affect your spending capacity in the near future. So, is there a solution? Bad credit car buyers who are unable to make a down payment can opt for bad credit no money down auto loans. Online auto financing companies can help you check interest rates for bad credit no money down auto loans and give you a better understanding. 

Down Payment – The Road to Commitment

Putting money down has many advantages. With large down payment amounts, you will remain committed to making monthly payments. When you invest a certain amount of money, you are more likely to make on-time payments which will also have a positive impact on your credit rating. Therefore, making a down payment is the ideal option for bad credit car buyers. 

If you are interested in getting a bad credit auto loan, making a down payment will make things simpler for you. Apply now and get ready for instant auto loan approval. Got no down payment? That's okay. Opt for bad credit no money down auto loans and buy a car quickly.