A major share of car buyers in US finances their new car purchase through auto loans. An auto loan is an all-inclusive term that covers loans given for buying different types of automobiles or vehicles. There are several types of money lending schemes available for buying heavy utility vehicles like trucks and buses. However these schemes are more expensive than loans offered for small vehicles like motorbikes and mini cars used for personal commutation.
Anyone who has a steady source of income can apply for an auto loan. Once the lending institution verifies the credibility of the applicant’s income source, it sanctions and approves the loan amount. To find out more about auto loans and their features one has to approach a lending institution, probably a bank or a Credit union. Different institutions sell different types of loans to their customers and they follow variable set of policies and conditions for each of these loans. The rate of interest payable on an auto loan depends on the income source and credit scores of the borrower.
Car loan or car finance is one of the most common type of auto loan availed by majority of the citizens. Even a teenager can apply for a car loan if he has a part time job that pays him around 1000 US dollar monthly. The minimum monthly income requirement varies from bank to bank. Big lending companies may require the borrower to earn more than 1000 dollars per month. If the credit scores or the past debt repayment record of the borrower is not good then his minimum income requirement might be raised. Usually customers with a bad track record are charged with high rate of interests. In conclusion, we can say that a loan is basically a customized form of credit service that differentiates customers into a wide range of categories.
For getting a car loan the candidate has to finalize the type of car he requires. He should also collect information on car quotes and insurance cost associated with different models. Finally, he should pick a dealer from whom he intends to make his actual purchase. The bank or lending institution requires all these information in detail and it also verifies the purchase by contacting the dealer in person. If the applicant’s income is unstable or less than the minimum amount required by the lending institution the loan application gets rejected. In such cases, the applicant can seek assistance from car dealers who can set him up with private financial institutions or money lenders that follow less stringent rules. There are many lending companies and car financing agencies that offer car loans to people with low income or low credit scores. However, in return for their favorable loan policies they charge a high rate of interest.
There are many online sources that offer free car quotes and loan quotes for used as well as new cars. Car loans are also given for buying used cars. Interest rates for used car loans are usually not as high as the ones offered for buying new cars. Online information sources can help customers in sorting out their options in a more systematic manner. Online auto sites also assist the users in finding popular automobile dealers and auto loan companies in their city or state.