Auto Finance: How Is It Done?

 The easiest part of buying a car, even when it is a hassle, is the negotiation of the price of the car and what is to accompany it for comfort and convenience. Now comes the real work and that is the auto finance. Where to go to get it and what to look for can be complicated, unless you are well prepared in advance. When we say in advance we mean well before you even bargain with the salesman for the car.

 We cannot stress enough that every auto finance officer, whether with the dealership, a bank, a credit union, or an online financial institution will want to see or know about your credit report and your credit score. The credit rating is what they all rely upon to see if you qualify for one of their auto finance programs. If you have a credit score over 640 you are either a good risk or a mediocre risk depending on the number, and you would then be a good risk for any auto finance program. A number anywhere under 640 will make you a high risk, and you are an auto finance high risk. There are financial institutions online that will talk auto finance with a high risk person but there are a much higher interest rate and higher monthly payment with such a loan.

 Our suggestion is that you get a copy of your credit report from each of the three major credit reporting agencies, correct all of the errors and clean up all of the negative balances and reports. When you have done this, have them issue a new credit report and take this along with you when you discuss auto finance with the dealership, bank or credit union.

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