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Tips To Buy Your Dream Car Even If Your Credit History Is Not Up To the Mark

Posted April 28, 2013 by inna to Finance 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

Almost everyone dream of owning a car of their own, no matter of its size. You can enjoy a long drive with your loved ones, where you can enjoy talking to her about old days. Some people dream of buying smaller vehicles, while others want to own a bigger one and Americans are not an exceptional to it.
Life becomes easy, comfortable, and convenient, if you own an automobile. Not many of them are financially stable to pay the whole money on spot. In such a situation, car loans are the best option. You can either buy a pre-owned car or a brand new one. Cash for Clunkers program is a beneficial program that is exclusively available for every American citizen. Buying a pre-owned car has become a common trend, provided they are well maintained.

Following are the advantages of buying a used car -

• The dealers will not sell you extremely old cars, as they are taken off the roads.
• Valuation of the vehicles depends upon the depreciation value. So why to buy a new one, when old is good.
• You can buy your favorite brand and model, without expending a fortune on it.
• There are many numbers of lenders and private auto financers in the market, who can grant immediate loans as per your needs.

You have two options to buy the used cars from the market. First one is, from a dealer and the second one is directly from the user i.e. private seller. If you are buying from a dealer then you will have all the documents and credentials ready for the vehicle. The procedure to transfer the ownership will be less time-consuming. The direct seller on the other hand, will promptly provide you with all the information including the history and other relevant details of the car.

There are few important facts that you need to keep in your mind, before you actually fill the auto loan application form. Don’t fill in the details without getting all the loan details like interest, term, and others.

You can follow the below mentioned steps before applying for a loan:

• Credit History - Every lender will evaluate your credit history so as to determine your repayment capability. If you maintain a clean and clear credit history then the lender will be happy to grant the loan, may be at a lower rate of interest.
• Set your budget - have an idea about your budget. It is always safe to buy something that well fits into your budget, so you don’t face any financial crunches. The EMI should be well within your budget, so you can save money to pay off the loan amount soon.
• Importance of down payment - If you agree to pay a huge down payment, then the lender will be in a position to reduce the interest rate and the EMI. Moreover it will include less risk for the lender and the borrower.
• Co-signer - You can add a person as a co-signer so as to reduce the risk that is normally involved in such financial dealings. If your co-signer has a good credit history it will ease the loan processing system.
• Make sure you have collected all the documents that are required for getting the loan.

Once you have accumulated all the documents and chosen the car of your choice, you need to choose a lender. You will need to check for information on trusted Atlanta title loan companies or the firms in your city and read their terms and conditions. Comparison is always good, as you will help you in getting better options. This will help you in analyzing the lender's competitiveness and reputation in the market. After this, you can negotiate the interest rate with the lender and finalize the deal.

About inna: Michael Bevan is a personal loan officer, and he works with a reputed financing firm in Atlanta. He also likes to share his knowledge on the various options available for getting financial assistance from repeated lenders.

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