Looking for that guaranteed car loan approval to go through? Actually there are several places these days which will offer you one of these wonderful car loans. The interesting thing about these types of auto loans is that many times you will not need to furnish as documentation as you would with a regular auto loan. Sounds crazy, doesn’t it?
The reason for this is that if your financial situation is strong enough to even be considered for a guaranteed auto loan, then your lender probably will not need much information from you. He and she most likely have all the information they need about you. You are probably already doing business with them – or have in the recent past. And you have long and solid employment with a great salary. You have tons of assets in the form of real estate or stocks – or both. And your credit history is stellar. Did I leave anything out? The point here is that it is a very easy decision whether or not to ever give you a car loan because you are obviously good for it.
Requirements for a Car Loan that is Guaranteed
So now let us move to someone needing guaranteed car loan approval that is maybe not as well-known as the person we described in the previous paragraph. In most cases, you will need a decent sized down payment for your new car. Always remember that down payments are the great equalizer in these deals. When you cough up a bigger down payment, it lowers the risk that will be assumed by your potential lender. They ALWAYS feel better when you make a bigger down payment – it makes them sleep better at night. And it shows you are serious about the loan as you take more of the risk yourself.
Many car dealers who are willing to offer guaranteed auto financing will even offer a car warranty during the period of the car loan. This is simply because they want the added security in case the other person defaults on the loan. Sadly, in some cases, even when large down payments are made and credit scores are great, the borrower will go into a financial tailspin and quit making payments. It rarely happens, but it does. If a borrower suddenly loses their job, or their child has lengthy illness that drains all their capital and then some, or maybe they started going through a very nasty and costly divorce. These dealers like to have that added protection against loss.
Read the Car Loan Fine Print
Do not get the impression that anybody can run out and get one of these auto loans – it is certainly not the case at all. This is why you need to read the fine print as you go through the guaranteed car loan approval process. There are often special requirements.
One of them we already discussed a little, which is the down payment. Many of these loans require a specific level of down payment – such as “no less than 25% down payment”. Or they may have a specific income requirement. In fact, some of these requirements are so unreasonable that no one ever tries to get one.
Another thing that a car dealer may require is that your car has a GPS chip installed so that they can locate it quickly in case something happens and the loan payments are not made. And guess who most likely pays for the chip and its installation?
Before getting guaranteed car loan approval, find out more about your rights regarding credit – https://www.consumer.gov/articles/1010-using-credit