Auto financing allows you to afford the vehicle of your choice through manageable monthly payments. There are a number of sources for this. Dealerships usually partner with lenders to be able to offer a financing option for would-be buyers. Banks also have this type of product, so do credit unions. More recently, we’re seeing the rise of online lending providers as well. It’s important to do your research and learn what car financing source would offer you the best deal.
Brand New Car
Got your eye on that brand new pick up? Own your next family auto with the help of a fixed rate auto loan. Whether you get it from the bank or straight from the dealership, do a quote comparison to get the option that suits you best.
Afford a second-hand Lexus RX 2010 series with the help of the right auto financing product. Get a used car with flexible payment terms . We can help you connect with a reliable lender who can answer all those important questions for you.
Auto Loan – FAQ’s
Should I have a good credit history?
While it’s not always mandatory to have good credit history, it’s an advantage. Having a credit score of 620 or higher ensures that you get the best deals, with the lowest interest rates.
How old must I be to qualify for a subprime auto loan?
You need to be at least 18 years old to qualify for most auto financing products.
Must I have regular employment to qualify?
It usually depends on the lender and/or the specific loan product itself. There are those that would require a borrow to present employment history going back at least two years. Other financial institutions may not be so particular about regular employment as long as the borrower is able to show that he has enough assets to be able to pay off the car loan.
How long does a subprime auto loan last?
The upper and lower limits for each lender may vary. But typically, the ending period is between five and seven years. A longer term with a lesser monthly payment does not work for everybody. When considering payment terms, it’s best to weigh up the difference in overall loan cost over different periods of time. This way, you’ll know what kind of payment plan works best with your current budget.
What is an APR?
The Annual Percentage Rate (APR) tells you much your loan is going to cost. Make sure to compare like-for-life deals. Look at the overall cost of a car loan rather than just the monthly rate. Loans that take longer to pay off often have lower interest rates, but will have you paying extra in the long run.
How much can I borrow?
The loan amount you will be approved for will depend on you being able to show your capacity to repay the lender, with interest.
Can I reapply if I’ve been declined?
Yes. However, it is highly suggested that you improve your financial circumstances (e.g. work on getting a higher credit rating) before reapplying for a car loan.
What if I can’t repay my subprime auto loan?
If you face difficulty in repaying your car loan, it’s best to contact the lender immediately and explain the circumstances. Keep in mind that non-payment puts your car or any other vehicle in danger of being repossessed. There is also the possibility of incurring heavy penalties.