Guaranteed Auto Loan: Eligibility Criteria and Process

Individuals need a car for quite a few reasons – taking the kids to school, couples going to office, ladies going for shopping, a long drive with family or friends, and so on. It is therefore more of urgency than a luxury to purchase a car. However, in spite of desperation to own a vehicle, not many can turn their dream into a reality because of shortage of money. To help people get rid of financing problems, the concept of guaranteed auto loan has come up.

Auto dealers in various regions of the world are offering guaranteed auto loan to people who wish to own a car. One of the major advantages of applying for such a loan is that the dealers don’t check your credit history while sanctioning the lending amount. Thus, individuals with a bad credit history can easily become the proud owner of their favorite car model.

Who is Eligible for the Loan?

A person who has a poor finance condition can easily apply for a bad credit auto loan without thinking twice. It is a free service provided primarily to the potential car buyers. There are many auto dealerships offering guaranteed loan to people eager to purchase a private vehicle. They request the customers to state the lending amount so that essential paperwork can be done for sanctioning money without further wastage of time.

The Financing Process

You can choose an automobile dealer of your choice. After selecting your favorite car model, you can straightaway apply for a guaranteed auto loan. During the application process, a borrower needs to submit the following documents including his bank statements, passport or such similar identification card, a utility bill, etc. Besides, on the loan application form, he or she needs to write the name, complete residential address, and contact numbers.

Loan Terms

Usually a car dealer asks the borrower to pay a certain percentage of the vehicle price as down payment. The dealer then sanctions the rest of the amount as loan. The borrower needs to repay the money on a weekly basis and in person. Failing to do so will turn him into a defaulter resulting in the dealership repossessing your vehicle. Besides, throughout the loan repayment period, the borrower is supposed to take good care of the car as per the contract.

You can easily find auto dealerships offering bad credit auto loan online. Reputed car sellers maintain an online presence to let prospects easily find them without traveling in person. You can check out the photos plus read all the cars features and technicalities to finally select your favorite one. The terms and conditions of the loan application process are also given online.

Websites of car dealers contain a car loan application form which you need to fill up providing your name, address, contact numbers, email address, and so on. After submitting a filled up form, you need to wait for your phone to ring or get an email from the dealer. Usually, you can expect a response within 24 to 48 hours.

To conclude, guaranteed auto loan seems to be the perfect choice for people who have poor credit history. It has proved to be an affordable financing option for all buyers.