Bad Credit Car Buyers! Keep your Co-signer in the Know

Getting a car loan is a challenging task if you are someone with a bad credit score. It is difficult for lenders to trust someone with a bad credit score as they have a history of failing to make timely payments. It increases the lender’s risk.

One way of reducing the risk is to have a considerable amount to pay as a down payment. However, if you cannot arrange a down payment, you can always find a co-signer and convince the lender to approve the loan application. They can become your savior in getting a bad credit auto loan.

A co-signer is a person who agrees to make the monthly payments on your behalf if you fail to do so. They do not own the car but are liable to pay off the loan if you fail to make payments.

Finding a co-signer is difficult because you need someone to take financial responsibility for your car-buying decision. Usually, a person who trusts you, such as a friend, family member, or spouse, becomes a co-signer for the bad credit auto loan agreement.

In addition to willingness, one should have a good credit score to qualify as a co-signer. Also, their debt-to-income ratio should be on the lower side to ensure the lender of regular payments.

Keep the Communication Channel Open with your Co-Signer

A co-signer trusts you with their credit score. If you do not make timely payments, the burden of your auto loan falls on them. And, if they cannot pay off the lender, their credit score can take a hit.

To an extent, their financial health depends on you making regular monthly payments towards your car loan. So, even before they enlist themselves as your co-signer, you must discuss your car budget and financials with them. Please provide a clear picture of your financial situation so they can make a well-informed decision. It will save you from future conflicts and bitterness.

Also, they should have a copy of the auto loan agreement. If you miss out on monthly payments, inform them so they can pay off the same on time. If you plan to sell the car before the loan ends, you must notify your co-signer. Even when you trade in your vehicle for a newer model or decide to refinance the car loan, discuss the implications with your co-signer.

So, it is necessary to communicate all information related to your vehicle with the co-signer. They may not be a co-owner or a co-driver listed on the insurance, but your auto loan can affect them severely.

What to do if you don’t find a Co-Signer?

Finding a co-signer is difficult because the co-signing process involves substantial financial commitments. It may help you to qualify for a bad credit auto loan and reduce the interest rate, but it is a financial burden for your co-signer. Also, it becomes your moral responsibility to pay off the loan on time because someone else’s credit score is on the line. So, think before you ask someone for help.

If you are unable to find a co-signer, do not lose hope. There are many online auto financing companies that offer bad credit auto loans without a co-signer. Apply with a reputed lender to buy a car without the clause of a co-signer.

Online auto lenders promise no co-signer auto loans for people with credit issues. Apply now for guaranteed auto credit approval.

Why Auto Loans are increasing Day by Day?

Finding an auto loan has become a piece of cake for American car buyers. It is quite evident from total outstanding auto loan amount for the fourth quarter of 2014. The amount rose to a record-breaking high of $886 billion. According to The Fiscal Times, the average loan amount has increased to $28,381 from $950 a year ago. Also, the percentage of new vehicles purchased with financing in the fourth quarter of 2014 increased by 84 percent when compared to the previous year.

What’s encouraging Americans to apply for Auto Loans?

Americans have returned to the automotive market and they are ready to shell-out money for their passion: The car. Here’s why:

• Expensive Vehicles

According to TrueCar.com, buying a new car or a used car has become very expensive. It costs near $31,000 to buy a brand new vehicle and a massive $16,800 for buying a reliable used car. Such high price rise has forced people to obtain car loans.

• Low Unemployment

According to Bureau of Labor Statistics, unemployment rate dropped to 5.5 percent. Lower unemployment rate has allowed Americans to shed their inhibitions. They are now willing to buy a car of their own instead of sharing it.

• Low Interest Rates

Even though the interest rates are slightly higher than last year, there are relatively low in comparison to previous years. According to the latest survey of Bankrate.com, average loan rate for a 60-month new car loan is 4.31 percent. You can obtain a used car loan for the same term with 2.65 percent in interest.

• Sub-Prime Loan Approval

Sub-prime auto loans are available to car buyers with credit score below 580. There is a large group of car buyers who fall under this category.

In the last quarter of 2014, there was a minor decrease in the share of sub-prime loans. However, the number remains still strong at 20.3 percent. Such a high number indicated the ease of getting a sub-prime loan.

So, these are the reasons for auto loan rise. If you are interested in buying a car, this is the best time to buy it.

Car Destination will help you in fulfilling your car dream. The sub-prime auto financing company ensures that you get quick bad credit low rate auto financing for your favorite car.

3 Tips for obtaining Low Rates on New Car Loans

16.5 million!

It is not the population statistics of an American city. It is the total number of cars soldin the month of July. What is the reason of such an enormous increase in car sales?

• Car manufacturers have started offering huge incentives on new cars and

• Lenders have relaxed the lending norms

So, if you are an ardent car lover, this is the perfect time to bring home your favorite car. Do not worry about high interest rates. You can obtain low rate car financing without any trouble. Learn the three most important tips for securing low rates on new car loans.

1. Create a Car Budget

Cars are the next big purchase after a home. And, with the constant rise in car prices, it is very important to spend your money wisely. By creating a car budget, you will be able to manage your loan in a better way.You should start by listing down your monthly income and expenses. Ascertain the amount of monthly payment. You must decide on the loan term as well. It will help you in calculating the total car loan amount.

2. Plan for Down Payment

Down payment is ideal for a new car buyer because it lowers the loan amount and makes car buying affordable. Usually, 10% of the total car value is sufficient for making down payment. But, you can improve your approval chances by increasing the down payment amount.

Is it possible to buy a New Car without Down Payment?

Car manufacturers have made it easier for buyers without down payment. They are offering humungous incentives. You can use the cash incentives as down payment. This is the ideal way of making down payment without parting ways with your savings.

You can even trade-in your old car. Calculate the value of your old car and ask the dealer to reduce the same amount from the total price of your new car.

There is one more way of making down payment. You can apply for personal loans and put money down. But, make sure that you get affordable rates on the personal loan.

3. Obtain Quick Loan Quotes

Along with the manufacturer incentives, the current interest rate on new car loan is very low. To take advantage of this situation, you need to find a quick auto loan. So, don’t waste time in walking down to a bank or a lender. Apply online for instant quotes. Online bad credit auto financing companies have lenient lending criteria. Also, they believe in offering new car loans because new cars have longer life than used automobiles.

However, make sure that you approach a reputed auto financing company. The company’s web page should be secure. Check for “https” in the address bar while submitting your personal information.

Once you submit your loan application, the online auto financing company will analyze your financial situation and offer you loan quotes. This process won’t take more than three days. So, it is advisable to take help of online company for quick completion of the new car loan process.

Car Destination is a reputed online bad credit auto financing company. American car buyers trust the company for securing instant approval and low rates on new car loans. Apply now and get ready for no obligation quotes.

The New Car Loan Manual for People with Bad Credit History

We Americans are a tough lot. We don’t give up easily. So, why lose against bad credit without a fight? You can obtain a new auto loan without worrying about your bad credit history. Don’t think is a midsummer’s night dream. It is a possibility. And, to make it a reality, I can help you.

Let’s us learn everything about buying a new car with bad credit history. After reading this auto financing manual, it will become easy for you to obtain your favorite new car. So, let’s start.

The Market is in your Favor

Bad credit history is difficult to tackle but it is not impossible to defeat it. It is definitely a challenge but don’t consider it a curse. For coming out victorious in the car financing process, you must have a positive attitude. Also, remember that the market is opening up for sub-prime credit buyers. In Q4 2013, the market share for new vehicle loans in the non-prime, sub-prime and deep sub-prime credit tiers increased to 34.1 percent of all new loans, up from 32.8 percent in Q4 2012. This means consumers are getting access to several financing options with improved rates.

Create a Favorable Situation for yourself

Now you know that market situation is favorable for bad credit car buyers, you must take steps for making it even more promising for yourself. And for that, you must plan for getting easy approval on bad credit new car loan financing.

Step 1 - Plan your Car Budget

It is very important to create a car budget for buying a new automobile. It will help you in staying away from expensive car models. If you make a budget, you will avoid costly loan deals and reduce the chances of ruining your credit score.

Making a car budget is simple. List down all your incomes & expenses and calculate your savings for every month. After that, ascertain the amount of savings that you can spend each month on the car loan payment.

Step 2 – Review your Credit Report

Credit reporting agencies commit mistakes while providing credit reports. So, it is important that you check your credit report for errors. If you find any unwarranted transactions in your report, you must inform it to the respective credit agency and get it removed. It will help you in improving your credit score.

You must also check your credit score before applying with a new car loan lender because your credit score may have improved over time and you may be unaware of it.

Step 3 - Solve the Dilemma of Down Payment

To pay or not to pay the down payment – that is the question. Down payment is a really confusing aspect of new car loans. It reduces the loan amount and saves you from spending your money on interest amount. But, it doesn’t make sense to make down payment by taking a high rate personal loan. So, what should you do about down payment? Well, the answer is different for every car buyer.

If you have an old car, you can sell it and use the money as down payment. You can even trade the car and ask the dealer to deduct the old car’s value from the total cost of the new car. Another way to put money down is to use rebates and cash incentives of the new car as down payment.

Step 4 - Seek help of a Sub-prime Lender

When you have bad credit history, it is important to take help of a sub-prime auto lender. It is because they have the accurate idea of dealing with your situation. Also, they will be able to understand your situation in a better way and provide affordable loan solutions for buying a new car.

Don’t even commit the mistake of going to a bank because traditional lending agencies like banks consider bad credit score as a red flag. They won’t risk their money on someone with a sub-prime credit history. So,it is ideal to apply with an online sub-prime lender like www.cardestination.com as you will have the benefit of completing your car financing process even without leaving your home.

So, next time you dream of buying a new car, make it a reality with this car financing manual. And, do remember to take help of a reputed sub-prime auto lender.

Your search for an experienced and reputed sub-prime car financing company ends here. Car Destination is an online auto financing company that will help you in getting quick new car loans with bad credit history. Don’t about your poor credit history. Simply visit the website and get ready for instant bad credit auto loan approval.