With the economy improving and job security better than it has been for a few years, it is perhaps finally the time when you can change your car. Many traditional financial institutions have been reluctant to lend money after suffering during the recent financial crisis. The Internet lenders in general have taken a far more positive view about lending.
They have realized that it is more important to know about an applicant’s ability to repay the loan than what might have happened in the past.
Repayment Ability: The Important Criterion
The first criterion on a loan is therefore the ability to make the monthly payments for the term of the loan. If you have had your eye on buying a new car for a while and have a particular car in mind, you will be able to work out the monthly installment cost over a given period.
You can do this by using an interactive online calculator and putting in the variables. You can do this even before you make contact or an application on a website.
There may be a slight difference in the headline interest rate you are quoted, but you will know whether you can afford a loan. You will have to bear in mind that you will have insurance, maintenance and running costs to take care of as well. If you currently own a car you should already have an idea of those costs anyway.
No Deposit Required
You will not need a deposit; this form of loan does not require a deposit because it is granted on the back of your credibility and not on the value of the vehicle. Traditional lenders have been particularly circumspect with people whose credit history has been hit during recent years; not so with the online financial sector that realizes that the risks in the marketplace are nowhere near as great as they used to be. Used car loans are readily available through online lenders on this basis.[Khaleef’s Note: I do not recommend purchasing a vehicle without a down-payment, simply because the chances of being underwater on that loan are far too great. If you have to borrow 100% of the cost of the car due to a lack of savings, then you should postpone the purchase until you are able to build up your savings to an adequate level.]
You are likely to find a very simple application procedure, and a good website will take no time at all to consider your application and make a decision. They will want to know a little about you, of course; SSN, address, bank and employment details together with evidence of your current income and expenditure.
It’s Up To You
If you are approved, and good applications normally are, then that is as far as the loan company will go in terms of involvement. They will certainly be able to recommend car dealerships and insurance companies if you wish, but neither is a prerequisite for loan approval.
You can buy from whichever dealer or seller you wish, and the check will be sent to them as soon as the car is ready. It could be fairly simple for you to be driving your new car away from a dealer’s showroom in no time at all.
A comprehensive website that has contacts throughout the financial sector is likely to have something available as long as you can show that you are capable of making the regular payments required.
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