Auto loans for bad credit with no money down is now easier than you think. Even after the recession n of 2008, car sales have increased appreciably since the last 5 years, thanks to relaxed credit norms. There are many car dealerships that specialize in sub-prime loans for poor credit scores. In order to avail such loans, it is important to take care of few factors that may affect your credit rating as well as financial standing when it comes to availing auto loans for bad credit with no money down.
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If you follow these simple steps, it is possible for you to get guaranteed auto loans. The first thing to take care of is credit scores. It is important that you are aware of your credit rating and what kind of interest rates apply for the same. Usually low credit scores mean higher interest rates. This should be kept in mind before making a car purchase.
The next thing to do is to take note of the term period. Any loan repayment term that exceeds 36 months ought to raise a red flag. The reason is that interest rates are compounded annually every year. For example, a $10,000 loan with 10% interest rate compounded annually means that in next consecutive year, loan amount would be $12,100. You should take realistic assessment of what amount you can bear.
Also, it is equally important to get a decent model car that can get you from one place to another. If you are buying a car for business purpose such as renting it as a cab or for office use, then the lender will consider it as an asset purchased for value rather than frivolous luxury.
Lenders would usually want money down when giving loans. This naturally poses a problem for those who can’t afford to offer a deposit. Having a deposit means the lenders will consider you as a serious buyer. Instead, you can turn-in your older car as collateral for Down payment. If you’re old car is well maintained and in good working condition, you will get a higher value for the down payment. The car dealer can then structure your loan terms and get loan from the lender after satisfying him regarding the down payment.
Following these few steps will get you guaranteed auto loans even with bad credit and no money down!
In the end, you should repay your loan amount in a timely manner, and you can improve your credit score with time and patience. Your next stop should be at autoloansbadcreditplus.com where you can get easy auto loans without any credit consideration!
