Why You Need Guaranteed Car Financing
If you have guaranteed car financing, it’s like carrying cash in your pocket when you go to a dealership to buy a car. You know that you can get a better deal from your strong bargaining position when you have cash to lay on the barrel head. You can take advantage of any cash discounts that may be offered. It makes it so much easier to bargain with cash instead of begging for financing from the dealer. Your threat to take your cash to a competitor is a strong motivator to a salesman or even his boss.
Even With Bad Credit Or No Credit History People Can Still Get Guaranteed Car Financing
Okay, now that we have established the advantage of going car shopping with cash or the equivalent, let’s see how to accomplish it. Even if you have zero cash and bad credit, you can use guaranteed car financing to buy a car with what the dealer views as the same as cash. There are many companies who can work with you and your situation to provide a guaranteed car loan.
“But wait…”, you say “won’t I be charged an outrageous interest rate for this service?” Not necessarily. You can often find rates that are comparable to what your buddy with good credit can find. You need to apply with several companies to get a good comparison. You are not obligated to use a loan guarantee. It is your right to “cherry pick” the best one, however.
Why Will They Give You A Good Loan Interest Rate?
Now you may wonder why companies would offer to a bad credit or no credit history person. The answer is that with the drop in auto sales over the last few years, lenders and dealers are being very aggressive in the car loan deals that they offer. Because they need to meet their quotas you can be the beneficiary.
Questions About Guaranteed Car Financing
- One question that is asked quite often is whether a person who has zero credit history can get guaranteed car financing. The answer is yes. This is especially true if the person is a student with prospects for a good income in the not too distant future.
- What about some who has recently lost their job? If their line of work has good rehire prospects, then it is yes again.
- Which are the best companies to work with? The best company to work with is the one that will give you the financing that you need. What that means is that you need to apply to as many different loan companies as possible. Start with a Google search. If you get a lot of approvals, then you simple chose the one with the best terms. If you only get one approval, then you know which company you have to work with.
You will get the best deal on your next car if you buy it with cash. Having a guaranteed car loan is equivalent to buying with cash. It is possible to get guaranteed car financing even with bad credit or no credit history.
