These days, many people are borrowing money to buy new and used cars. If you’re buying a car for the first time, getting approved for financing might seem vast and complicated. But once you know the basic facts, you’ll be better equipped to choose the financing option that’s best for you. Today on the blog, Quick Loans looks at some of the basics of car financing.
Your Financing Options
First, it’s essential to know your financing options. You can finance a car through the dealership, or you can utilize a direct lender.
When you apply for car financing through the dealership, you take part in a contract with the dealer. You purchase a car and agree to pay the amount financed (plus a finance charge) over the length of the loan. Then, the dealer usually sells the contract to a credit union or bank that collects your payments. Dealership financing may provide special incentive programs and multiple financing options, and most dealers will obtain a copy of your credit report.
Your other option is to borrow directly from a loan agency, such as Quick Loans. In your loan, you agree to pay the amount financed (plus a finance charge) over a period of time. Then you use the loan to pay for the vehicle when you’re ready to buy from a dealer. Direct lending allows you to shop around, comparing lenders’ rates and terms before you choose to buy a car. Also, you can get pre-approved for financing before you look for a vehicle, even if you have credit issues.
People with All Types of Credit Can Apply
At Quick Loans, we encourage people with good, bad, or no credit to apply for auto financing. We don’t let issues like bankruptcy, foreclosure, repossession, or late payments interfere with getting you approved. To learn more about our pre-owned auto financing program, contact Quick Loans today.
Auto Finance Loans May Vary
We usually require that the borrower makes a down payment of 10% to 20%, but a smaller up-front payment may be feasible. It depends on many factors, including the sales price and vehicle purchase equity. Quick Loans evaluates each transaction based on its value.
Get Your Auto Financing Approved Today
Quick Loans has provided auto financing to many satisfied customers in the Springfield area. In setting up and servicing your loan, we offer competitive rates and quality service. Apply online and get approved today.