Zero Down Payment Auto Loans – The Truth Your Local Dealership Does Not Want You to Know!

Most people think of purchasing a brand new car or truck as of something distant because they either are worried about their credit rating or are afraid of a high down payment they would have to come up with that they do not have set aside. The best solution for most consumers is a zero down payment car loan.

Do Not Go By What Dealers Tell You

Many car dealers attract customers by advertizing zero down payment financing on new vehicles with low monthly payments. They advertize great deals everywhere, from local papers to radio, TV, and internet. However, once it comes down to reality, most of these promises fail. Once you are in the financing office after a test drive at your local dealer, in most cases, you are approached with different terms than advertized.

Most finance managers would simply tell you that the offer had expired, or you did not qualify for preferred financing due to your low credit score. Then they give you an offer for financing with a down payment and a higher interest rate that most people would take, as they see no alternative. You drive away in a brand new vehicle, happy with a car but upset with the financing terms, and managers and owners of a car dealership fill their pockets with bonuses and commissions they get from auto financing companies for marking up the interest on a loan. This is the way it works.

Auto Dealers Are Not The Only Source For Vehicle Financing

There is a pleasant alternative, however, that most smart consumers have taken advantage of already. Auto dealerships are not the only ones that grant loans, and there are other lenders that would pre-approve you, before you even step your foot in a dealership. Most independent auto finance companies operate online, avoiding any intermediaries in the lending process, allowing consumers to enjoy lower rates and better auto loan terms. Most of them utilize lender-matching platforms that allow consumers submit one application only to enjoy multiple loan offers from different auto finance companies at once. Most, if not all, of these lenders offer better terms that your local bank or dealership may present you with. This is how you may get ahead of the game and avoid empty promises of zero down financing from your local dealer.

Qualifying For A Zero Down Loan Is Easy

Another common myth that people believe in, mostly due to influence of auto dealers, is that only people with excellent credit may qualify for zero down loans. Some dealers even fool the customers by telling them that they have special relationships with certain lenders. Online lenders do not care about special relationships – they are in the business of granting loans for qualified individuals and making money. You may be surprised that the qualification criteria for zero down loans from lenders online are more relaxed when compared to banks and dealership financing. They mostly need proof of steady employment and disposable income to cover loan payments, and do not worry too much about your past credit mistakes. In addition, they make preapproval decisions in a heartbeat, and may get you a blank check the next day, that you would be able to use at any dealer of your choice.

Find Online Auto Loans for Good Or Bad Credit Individuals in 7 Steps

Being on the lookout for a good ideal on an auto loan if you have questionable or bad credit can become a long waiting game. The chances of a really low rate for people with a FICO score under 600 being advertised in a newspaper or on TV are slim-to-none.

A better idea is to take a more proactive approach with finding auto loan deals that work for any credit situation. By aggressively going after what you need rather than just sitting back and hoping for the best, you will have a 10 times better chance of getting it.

The truth is, there are many auto loan lenders out there who specialize in working with borrowers with a full range of credit scores, from good to bad. You just have to know how to prepare yourself for finding them and then applying.

If you want to find online auto loans for good or bad credit individuals, here are 7 steps to getting what you want:

1. Know your limitations and choose the right car:

You may have your eye on that hot new European import, American muscle car, or sleek Japanese sedan that is sitting on the dealer lot that you pass by every day. And to be sure, there are of course no rules written anywhere that say you can’t qualify for a loan to buy the car of your dreams right now.

However, if your credit score is below 600, a more realistic approach for you at this point would be to set your sights on a car that is not quite so expensive. Going after a lower-priced car means a smaller auto loan amount – which will increase your chances of getting approved significantly.

2. Understand your FICO score:

You may not enjoy looking at your credit report, especially if you have a low FICO score. However, taking the time to look at your report now will pay off later. That’s because when you do, you will have the chance to prepare explanations regarding any particular items that a would-be lender might flag as undesirable. And, it also gives you the opportunity to spot any errors in your report that you could get removed at this point.

3. Talk to a friend who is in a similar credit situation to you about their preferred lender:

Think about your circle of friends: know anybody with credit problems who also owns a car? It just takes a quick phone call or e-mail to find out whether they can point you in the direction of a reputable bad-credit lender.

4. Start your online search:

Even if you get suggestions from your friend about a good lender, still take the time to increase your list of candidate car loan lenders by doing an online search of your own. Keep your eyes peeled for “bad credit auto lenders” and “any credit OK auto lenders.” This is how they refer to themselves, and they are looking for customers like you.

5. Compile a list of 5 bad credit online auto lenders:

Make sure your search yields you at least 5 solid-looking lenders. More choices means more opportunities to get approved at the lowest-possible rate for your situation.

6. Contact at least 3 of them:

Now, set aside an hour or so and contact at least 3 of them. If you like what you hear, go ahead and apply to all 3.

7. Move on if the offer does not meet your interest rate or payment needs:

Each time you get an offer, be sure to move on to the next one if you suspect you can do better in terms of the interest rate. Remember, you always have other options. No matter what, make sure to follow through in applying to all 3 lenders.

Take these 7 steps to finding online auto loans for good or bad credit individuals.

Work Out What You Can Afford With an Auto Loan Interest Calculator

Before you even think about buying a car, you need to think about how you are going to finance this expensive purchase. Most people are not lucky enough to be able to buy their cars outright, thus take out car financing either through the dealership, a bank, a credit union, a building society, or a specialist e-lender. When you work out what you can afford to pay each month, you will know what kind of car you are able to buy. An auto loan interest calculator takes the hard work out of figuring out just what that amount is, and are available on a number of websites. All you have to do is enter your financial details into the online calculator and it will bring up the figure you can afford – it really is that easy!

Most comparison sites and the websites of the e-lenders themselves offer an auto loan interest calculator so the first thing to do is to visit one of those sites. Each one is slightly different but the following example is fairly typical. Firstly, you will have to enter the price of the car. Even if you don’t know what car you want, you should know roughly the amount that you are willing to spend on your car. The next step on the auto loan interest calculator is to enter the amount that you can put down as a down payment. You don’t necessarily need a down payment and you can leave this section blank but do bear in mind that some lenders won’t approve you if you have no money to put down at all, and you are more likely to be offered a lower interest rate if you make a down payment. Any money you offer is collateral, meaning you will be perceived as less of a risk, and therefore a more favourable loan candidate.

The auto loan interest calculator will then require you to enter in the length of the term you would prefer. You can work this out from the amount of money you can realistically afford to pay each month. If you only have a small amount, you are looking at a longer term to give you the time to pay it all off. If you are able to afford to pay a reasonable amount each month, you may want a shorter term so that you end up paying less in interest over the course of the loan and of course, own it fully in a shorter length of time. Next, the auto loan interest calculator needs the interest rate of the loan – generally, if you have good credit it will be around 6% and if your credit rating is low it may be 10%. Remember, this is just an estimate so that you can work out roughly what you can afford so don’t worry too much about getting the figures spot-on. The amount you are financing will need to be entered into the auto loan interest calculator next – remember to take into consideration any down payment you will be making. Once all that information has been entered into the auto loan interest calculator, simply press ‘calculate’ and your monthly auto payment will be revealed.

An auto loan interest calculator can be a valuable tool when working out just what you can afford when you come to buy a car. Simply log onto the Internet and you will find many sites offering this service.

Guaranteed Auto Loan Approval For People With Bad Credit

When you are hit by bad credit and still need a car loan, the guaranteed auto loan approval is the best way to get behind the wheel of your own used or new car. With thousands of online lenders willing to provide you a guaranteed auto loan approval without a credit check, the process is simple and easy.

Before you set out shopping for the guaranteed auto loan approval, it is essential that you understand the significantly higher interest and finance costs attached to these types of loans. The rapid depreciation on your car has a higher element of risk for the lender and this leads to the higher costs.

A major advantage with online lenders is that you enjoy a number of facilities to pick the right lender and find the best offers possible. Shopping for guaranteed auto loan approval calls for patience and extensive research. Auto loans are a competitive business and many new players are entering the fray almost every day. Therefore, finding these new entrants and driving a hard bargain with them will work to your advantage. To stay afloat, the newbies need business and they are often times more willing to flex a bit to accommodate your expectations.

It is important that you carefully design your monthly payments against the guaranteed auto loan approval in relation to your income and disposable cash you have every month. A car loan calculator available from the internet is a useful tool to consider different combinations and varying attributes. Managing your monthly payments assumes greater significance particularly when your credit scores are not healthy enough.

Some websites also offer quotes from different lenders so that you can compare the numbers on a single screen. These websites are also considered safer to deal with since the security aspect of the website is monitored externally. Considering a substantial down payment of say 20 percent will help you bring down the loan value and correspondingly the monthly payments. Pegging the tenure of the loan to 24 or 36 months will further bring down the finance cost and interest charges on the guaranteed auto loan approval and this in turn, will be reflected in your monthly payments.

More importantly, the guaranteed auto loan approval will help you shop for the car with a pre-approved loan. Often times, this is a very helpful measure since you have abundant clarity on the type of car you are looking for and the accessories you must have. The car dealers’ sales personnel will therefore not be in a position to overwhelm you with all those ‘irresistible’ offers.

The guaranteed auto loan approval will also help you rebuild your credit report and bounce back to healthy levels. This can happen when you diligently plan your monthly payments over the entire tenure of the loan and do not allow any defaults. 6 months to a year after you have availed the loan, when your credit score improves, you can also refinance the loan through a different lender, bringing down the interest and costs and thereby the monthly payments.

Conduct an Auto Loan Comparison Before Taking Out Car Finance

If you are looking for car finance then it is important that you take the time to find a quality lender who is able to offer you the best rate. One of the quickest and easiest ways to shop around for your finance is by using auto loan comparison websites. These sites allow you to get information about the different rates offered by a large number of lenders so that you can begin finding companies that boast the lowest interest rates around.

There are many different websites that can give you an auto loan comparison. These can be information websites on car finance, auto loan brokers, review sites or those that offer financial services. It is important that you realize, however, before taking the information on an auto loan comparison site as gospel, that all of these sites will often have their own agendas and so you should use the information they offer as a guide only. You should use these websites to give you an idea of the interest rates offered by the different lenders in order to conduct an independent auto loan comparison.

Conducting your own comparison is an important step when it comes to securing your car finance. The interest rates on car loans will vary somewhat between lenders and so it is crucial that you spend some time looking at the rates offered by a large number of bank and non-bank lenders. In today’s market it is possible to find great deals on car loans but you will only do this if you spend the time doing an auto loan comparison.

One of the first places you can begin when carrying out an auto loan comparison is with your own bank or financial institution. This will give you an idea of the rates that the larger lenders are offering so that you can compare these with what the non-bank lenders that you will be able to access online.

Once you have established how much the major players in the market are offering on car finance you can begin searching online for a comparison of financing options for your vehicle. Many of the lenders that you will have access to on the internet will generally be non-bank lenders and so you will be able to compare the rates that they offer in order to get an idea of the difference in rates between the different types of loan providers.

While, naturally, price is an important consideration when getting car finance, but it should not be the only factor that determines whether or not you select a particular lender. When conducting an auto loan comparison you should also aim to compare the loan products offered, the service that these lenders provide as well as the additional fees and charges that they may apply to your loan, such as loan establishment fees and other charges that may be applied.

Your car loan will commit you financially for several years and so, before you sign on the dotted line, you should always conduct a good comparison to ensure that you are getting the best value for your money.

Things to Consider When Getting Pre Approved Bad Credit Auto Loans

When it comes to getting car finance with a poor credit history then it can certainly help if you look around for pre approved bad credit auto loans. Not only will it make the process of buying your car a lot quicker and easier, but it can also give you some bargaining power if you have your finance approved before you begin shopping for your new car.

There are many lenders in the industry who offer pre approved bad credit auto loans, and what’s more a large number of these companies can be found on the internet. This means that you can easily shop around for pre approved bad credit auto loans online, in your own time, so that you can be sure you are accessing the right finance package for you at the right price.

If you are looking at getting pre approved bad credit auto loans it is important that you get yourself into the best financial position that you can before you begin your search. Look into your credit rating thoroughly to determine the cause of your failing credit rating and, if possible, try to pay of any outstanding debts before applying for pre approved bad credit auto loans. It may mean that you may need to delay purchasing your car for a few months, but spending some time improving your credit rating will enable you to get pre approved bad credit auto loans a lot easier and at a much lower rate.

Most lenders who deal with poor credit finance know that they are dealing with customers who have a less than desirable credit score. For this reason, your credit report will not be the determining factor when it comes to getting pre approved bad credit auto loans. Approval of this type of finance generally comes down to your current financial position and whether or not you can afford to repay the amount you wish to borrow. Spending the time working out your budget will allow you to determine exactly how much you can afford to repay and enable you to work out your borrowing capacity. Allowing room to move within your budget and avoiding borrowing up to your maximum will help make getting pre approved auto loans a lot easier, regardless of your history.

The majority of lenders who offer pre approved bad credit auto loans are your private lenders. The big banks rarely deal with customers who have a poor credit rating, so you will have a better chance of getting your finance if you go with a smaller non-bank lender. Since there are so many private lenders who specialize in bad credit finance, most are doing all they can to attract customers, including offering finance at very reasonable rates. It is extremely important, when looking for this type of finance, that you spend the time shopping around for your loan and comparing as many lenders as you can so that you can be sure you are getting your finance at the best possible price. While poor credit finance generally does cost more, you certainly want to avoid paying too much for your car loan.