What Auto Lenders Look for While Offering you Car Financing?
Articles | Glossary | RSS Feed | Sitemap
Auto Financing Company Car Loans How It Works About Us FAQs Calculator
Bad Credit Auto Loans Program
 
DRIVE YOUR DREAMS!
Get your Car Financed in Minutes...
100% Secure Website
High Approval Rate!
All Credit Types are Welcome!
  Get FREE Auto Loan Quotes Online!
Full coverage in all 50 states
Guaranteed approval loan
Best interest rates available
Bad credit auto financing
Second chance auto loan
Low income automobile loan
Poor credit auto financing
No money down auto loan
Sub-prime auto lenders
Auto dealership financing
Pre-qualified car credit sales
Low Rate Auto Loan Program - Apply Now!
What Auto Lenders Look for While Offering you Car Financing?
HOME
 

Auto loans are a necessity for everyone because cars have become very expensive. Everyone is apprehensive about car loan approval because most of us don’t know what factors are considered by auto lenders. Once you know them, you will be more confident in getting a low rate car loan.

Apply Online for FREE Auto Loan Quotes

We often commit a mistake when we consider credit score as the sole important requirement for getting instant approval on low rate car financing. But, the reality is different. Credit history is just one factor and there are many others factors which are equally important. Let’s understand what really constitutes your car loan approval criteria.

Down payment Capacity

Cars are a depreciating asset and that’s why; getting a car loan with 100% LTV is difficult. Even if a lender approves 100% car financing, it is not a wise idea because it significantly increases the chances of an upside down auto loan.

When the lender pays only part of the car cost, the rest comes from down payment. Down payment is the initial upfront amount that you pay to the dealer for buying a car. When you put a substantial amount as money down, lenders know about your financial capacity.

Larger the amount of money down, larger will be the lender’s confidence in you. The reason is simple. A huge down payment ensures that you are financially capable of making regular payments.

Repayment Capability

Lenders are interested in knowing about your repayment capacity. As they are making an investment, they want to ensure that they have taken a correct decision.

Before offering guaranteed low rates on car loans, lenders make sure that you have enough resources to make regular payments. Generally, auto lenders check employment status, salary, employment period and ascertain the monthly payments that the borrower can afford. If you are a self employed individual, you will have to provide details about your income source and tax information to the lender.

Collateral

Although the car that you buy is used as collateral by the lender, we all know that the value of car depreciates over time. Now, lenders have a solution for this. They often ask for additional security. You can use your home or any other vehicle like a car or a boat as collateral.

Additional collateral lowers the rate of interest and offers other borrower-friendly advantages like longer repayment period and lower monthly payments.

Credit Score

Before approving your car loans, auto lenders check your credit score. It lets them understand your past credit behavior.

Late payments, defaults, arrears on past loans make your credit score bad. If you have a poor credit score, lenders may offer high rates. But, here’s a strategy to lower the credit risk associated with you. You can opt for a higher down payment amount or go for a co-signer. When lenders see a co-signer with a good credit score, they are assured of their investment.

Even though lenders have different approval criteria, these factors are important for every lender. Remember that you must lower the lender’s risk if you want to get guaranteed approval auto financing in an instant.

All the best for buying a car!

Rapidcarloans.net is a premier online auto financing company that offers guaranteed low rates on auto loans. You can instantly avail car loans for buying a new car or a used car from us. Apply now and get 100% free car loan quotes!

 

Recent Articles:
 
Bad Credit Car Loans | New Car Loan | Pre Approved Car Loan | No Cosigner Auto Loans | Low Rate Car Loans | First Time Car Loan | Guaranteed Auto Loans | Student Car Loans
Instant Car Loan Approval | Used Car Loan | Blank Check Car Loan | No Credit Car Loans | Subprime Car Loans | Car Refinance | Private Party Car Loans | No Money Down Car Loans

Copyright © 2008-2015 RapidCarLoans.net. All Rights Reserved.

Coverage: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

Email: finance@rapidcarloans.net