Are you in the market to purchase a used car? Or have you already attempted to purchase a used car, but due to the down economy and tough credit guidelines you had a problem in obtaining a car loan to get a vehicle. Well there is a way for you to go to prequalify for auto loans that fit your budget and over all goals.
Generally there are two different types of auto loan programs. There are new car auto loans and used auto loans. A new car loan generally requires you to have higher credit scores and just over all better credit. For the lender a used auto loan is a higher risk. They have to look your over all credit situation to see if you are able to get a second chance to rebuild and re-establish the credit.
Some local used car lots offer their own in house programs where they actually finance you. These programs are called Buy here pay here lots. The credit guidelines may be lower but this means your loan interest rate will be substantially higher than a traditional auto loan.
There are also Special Financing options that mostly all auto loan companies offer. This means that a bank will finance you but again it will not be the best auto loan rate. It will be high in most cases compared to regular auto loans. Usually, you will have a large down payment required with the higher interest rate but you are still able to acquire the vehicle for a decent price even when working with self financing car dealers.
It is wise to do all your research and to know before you apply for any auto loans what your credit standing is. If you are a credit score of 580 and under you are more than likely in need of a special financing or bad credit auto loan. If you are a 700 score and under you are in marginal credit zone and more than likely could qualify for a traditional auto loan. If you have 700 and above score then you are considered to have great credit and will most likely not have a problem anywhere.
If you are a member of a credit union try applying for a loan there most of the time underwriters will look at how long you have been a member, check your bank statements, etc and most cases they will approve you with great rates even with damaged credit.
Article Source: http://www.articlesbase.com/cars-articles/you-have-options-when-purchasing-a-used-car-4468436.html
About the Author
I am currently working for Auto Credit Express.I have helped thousands of people with bad credit find and obtain financing to get into a new or used vehicle.
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