Choosing a brand-new car or a used car as your first auto vehicle may require that you consider the price of each and how it will affect your finances. A first time buyer having no credit can also stop worrying by opting for a best car loans. The car itself can act as a security for a car loan whether new or used.
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Most Americans consider a car a necessity for ease of commuting and saving time. However students and people who have just begun their job career with limited or no credit history are at a loss of ways to finance a car. A way out could very well be used car financing which has a high chance of being approved for an auto loan. It can also be used to create a good credit history by regularly paying the monthly installments. AutoDriver is one such company which can give quick and easy online approval for a secured auto loan.
It would be advisable to learn a few things about a new car loan before you try to get approval on a new car loans with lower rates. Mentioned below are a few tips for persons with no credit to consider before applying for a car loan.
Choosing a brand-new car or a used car as your first auto vehicle may require that you consider the price of each and how it will affect your finances. Used cars cost significantly less than a brand-new one. A new car depreciates in value by approx 30 percent in its very first year. The rate of interest for a used car is higher even in the best car loans and the borrower runs the risk of an upside down loan where the price of the car becomes much lower than what you owe the lender. Add to this, insurance premiums and car maintenance and you can calculate how much you can afford to pay towards your car loan each month.
A new car may cost much more, have longer warranties with no repair and maintenance required. The interest rates may be lower and longer loan duration may also reduce the monthly payment. A first time buyer having no credit can also stop worrying about not having a cosigner by opting for a secured car loan. The car itself can act as a security for a car loan whether new or used. The lender reserves the right of repossession if the borrower defaults on the payments for a few months despite reminders. Using your home for a secured car loan is not advisable for the same reason.
Many car loan companies have extensive online websites with short and easy to fill application forms. Free quotes are quickly sent to your email and you can compare quotes from various lenders. Some online lenders may be willing to offer you a blank check car loan. If you get approved for such a loan you can shop around for the car of your choice with the best deal. A blank check auto loan is like cash in your pocket as far as the car dealer is concerned. You can negotiate for a good price.
Upside down auto financing can well help you get a new car even when you trade-in a car with a value less than what you owe on it. The lender will write an agreement for the difference to be rolled in the price of the new car. You may however have to pay higher interest rates or end up paying more than what you thought by the end of the loan