Used Car Auto Loans
If you are planning on buying a used car or a second hand car, then you will probably need a used car auto loan. It is basically the same as getting an auto loan for a new car with a few stipulations. First and foremost, auto loan lenders are looking for people who have demonstrated that they are worthy of borrowing money. This simply means that they are looking for people with good credit. Banks are concerned with the fact that they are lending money to people who may or may not be able to pay back their car loan. Because of this they often put certain stipulations on used cars to make sure that the auto loan they offer you is going to make enough interest on the money that you are borrowing.
They often request that you take shorter car loans. They are usually not willing to give an auto loan to someone buying a $3000.00 car for 5 years. They feel more secure in giving an auto loan to someone who is buying a $3000.00 car for only 2 years. For people with bad credit, this is most often the case. Any lenders offering an car loan would much rather prefer having you buy a more expensive car for a longer period of time. That is why you might find yourself being declined for a small loan. That doesn�t mean that you need to get a used car loan for more money, you just have to investigate alternative lenders who are willing to give you a smaller auto loan.
Car loans with no down payment are usually directly given for cars that have higher mileage or are older models. Hence, that is why they don�t like to give out the auto loans for longer periods of time, because the car just simply isn�t going to last as long. It is really to your benefit to do a shorter loan because although you may love your used car, it rarely is worth much at the end of the no down payment car loan.
Cameron Sims is a financial advisor and specializes in the fields of a no down payment car loan.