Getting Bad Credit Auto Loans
Are you stuck with a bad credit score and not getting any help from traditional lenders? Are all the car dealers you approach insisting that you pay cash down for your new car? Well, if you are looking for loans, you most probably don't have enough money to pay cash down for a car. Does this mean that you will never own a car? If no one is willing to give you a loan, how will you improve your credit score? Read on to find answers to all these questions...
Have you heard of bad credit auto loans in Miami? These loans are offered by lenders only to people who have bad credit scores. So if you have a bad credit score it would make you an ideal customer for such lenders. This puts you back in a position of power as far as getting a loan is concerned. These lenders are more than willing to lend you money and are not worried about your credit score. Don't think they aren't worried about the security of their money though. They will take necessary steps to secure themselves before giving you any money.
One of the first things these lenders check is your ability to repay a loan. This means that they will ask you for proof of your income as well as details of your fixed monthly expenses. This will allow them to ascertain the amount of money you can set aside for repaying your loan and they will approve your loan accordingly. This means, if you apply for an auto loan which is outside your budget, you will most probably be rejected. So apply for an affordable loan instead.
Now let me tell you something about the down payments that most car dealers are after. Almost every car dealer marks up the price of all the cars on his/her lot. But apart from this, if you are applying for a loan through a car dealer, he/she would have also marked up the rate of interest. So basically, the car dealer profits from the sale as well as from the interest you pay. This can easily be avoided if you just got a pre-approved loan before visiting a dealer. This way, you will also know how much money you have been approved for and can choose a car accordingly. There is no need for you to worry about whether or not your car loan will get approved and in most cases you can drive off with your car on the same day itself. Plus, when you have a pre-approved loan in hand when visiting a dealer, you will be able to negotiate a lot better with him/her as well.
At the end of the day, every penny saved on the purchase price of the car will help reduce the interest you have to pay won't it? So work hard on your car loan, after all, you will be stuck with it for at least a couple of years.