Guaranteed Auto Loans for People With Bad Credit
Car ownership is something that everybody desires but not all can afford. Banks tend to require high down payments and perfect credit for most people who want to take out a loan to pay for the purchase of a vehicle that they can depend on. They do not want to go buy a cheap car and pay cash just to have it break down on them in a week; they want something dependable. Guaranteed auto loans for people with bad credit can offer other a second chance at auto credit and some hope at owning a car that they can depend on and be proud of.
How Guaranteed Financing Works
It is easy to get approved with guaranteed auto loans where the hardest part of the process is typically finding the perfect car. The potential buyer simply fills out an application online, goes to the participating car lot and then drives away in the car they want, not the one they have to settle on. Guaranteed auto loans do run a credit check but only to give the buyer a "score" that will determine the interest rate and what type of vehicle they qualify for; mainly to ensure that the buyer is getting into something that they can afford so they are not put into a place where they buy a car and then cannot make the payments. Once the vehicle is chosen and the rates are agreed on, the buyer then signs the paperwork and drives away in their new car, truck or SUV.
Kinds of Vehicles Financed with Bad Credit
When most people hear second chance financing with bad credit or guaranteed credit approval, they often think that the vehicle they are going to get is an old, broke down, ready for the junk yard type of car but in reality, this cannot be farther from the truth.
The fact is that the finance companies want consumers to have a vehicle that is reliable and that they enjoy because they know that when these needs are met, it is much more likely that the buyer will take the payments seriously and take good care of the vehicle; especially with a down payment which most guarantees will require. Guaranteed auto loans usually have a limit on the age of the vehicles they finance, generally less than 10 years and sometimes less than 6 or 7. These vehicles can have higher mileage which does not mean that they have less life, only that the value is such that they are easier to finance.
When you go to purchase a vehicle with guaranteed auto approval, you are going to get into a decent, newer car, truck, SUV or minivan no matter what your credit situation is. You will find a car that fits all of your needs at a price that fits into your budget.