Do you have perfect credit, a high credit score with no delinquencies, and make no mistakes in your finances? Good. If you do, you probably don't need to read this blog. But if you're like a lot of the rest of us, you may have run into trouble with your credit from time to time. This can cause your credit rating to drop, and it makes you ineligible for most car loans.
So, when you are in need of a car, what do you do?
Solution #1: Get a Co-Signer
One solution is that you could see if you could get a co-signer to sign a car loan with you and put their money on the line with you. But many people would feel put on the spot in this situation, and they may hesitate to do it if you have had a hard time paying your other obligations. It's also a bit awkward to ask a friend or family member to co-sign a loan that you may or may not be able to pay back.
Solution #2: See if you can get an old car from a personal sale
Many people sell cars on their lawn for next to nothing. In some cases, you can get them for as low as $500 or less. If you can get that much cash together, you could take a risk with an older car and see what you can do with it. But often these cars are junkyard cars that have little value and cannot be trusted on the open road.
Solution #3: Purchase a fleet car from an auto dealer
Fleet cars are cars that are owned or leased by a business, government agency, or other organization. They are not personally owned vehicles. Car rental companies have fleet cars, and Taxicab companies or public transportation offices sometimes have them as well.
The most significant advantage to fleet cars is the fact that they are priced lower than most types of vehicles since companies or agencies have gently used them. The depreciation has also already occurred. So you are usually going to get a good quality vehicle for a fraction of the cost.
Are fleet cars hard to get?
Fleet cars are pretty abundant if you know where to look to find them. As mentioned, they are often offered for sale or rent by government agencies including police stations, public transportation offices, or auto sales locations. Once you locate where they are, you can purchase or lease such cars if you have an auto loan.
“Aye, there's the rub,” as Hamlet said. For people with bad credit or no credit (new buyers), it's hard to get the auto loan you need to help you get the car you need. Your credit score does follow you because most car loan lenders check your credit score multiple times, which can lower your credit rating before you even get approved!
There's got to be a better way.
Don't want to have to wait forever to purchase a vehicle? You need reliable transportation for your job, traveling, and peace of mind. What do you do?
How to Get an Auto Loan with Bad Credit
The best solution when you are looking for a fleet car is to look for an auto loan company that specializes in auto loans for bad credit applicants. No matter whether you are getting a fleet car or any other kind of car when you have bad or damaged credit, it's hard to get someone to talk to you.
That's where we come in.
Valley Auto Loans provides you with a way to get the car you want with a preapproved auto loan. Using several lenders, we send your auto loan application to several lenders for consideration before performing a credit check. This means you do not have an impact on your credit score that you would from doing it the traditional way. So you don't risk harming your credit history for the inquiries.
Pretty smart, huh? We think so!
Tip: Send multiple applications in at the same time
Why do we send multiple applications for your car loan in during the same time frame? Because doing this around the same date lowers the chances that it will lower your rating. Experian and the other credit agencies consider multiple inquiries as inquiries that are spread out over several dates. If you do them all together as we do before a credit check, you will not damage your credit rating further.
Let's talk about Amortization
Amortization is a fancy term that you may hear but not understand when looking around for a car. Amortization is the process of calculating your interest and principal payments and working out a payment arrangement schedule based on certain calculations. It is important to understand how this works to find out if it is a good deal or not. Check this amortization calculator to figure your car loan payback amount.
Amortization also means that your value or equity in your vehicle will increase at a slower rate at the beginning of the loan period than near the end. Selling your vehicle early in the payment term would be a disadvantage to you.
What about refinancing?
Refinancing your vehicle during your loan can also affect the results of your equity and the amount you may get for your vehicle if you sell it earlier than the contract is dated for. Make sure you understand all terms and that you receive in writing the details of your car loan. Lenders are required to give you this document at the time of your sale.
Ask questions before signing
This may seem like the advice you'd get from your grandmother, but Grandmother was right. You should read the fine print and have a full understanding of your loan terms before you sign. Once you sign, it is a legal document that you are responsible for.
Should you refinance your car?
If you already have a vehicle that you want to refinance, you should consider the fact that the value of your vehicle will determine in part how the terms are arranged with a refinanced vehicle. That's because the loan is refigured to allow for the payment of the existing balance of your car loan. The car is used as “collateral” for the refinanced terms. It will involve creating a fixed interest rate and monthly payments for a set amount of time.
For this reason, the equity of your car may be figured into the mix regarding your terms on the refinancing.
In essence, refinancing your vehicle involves taking out a new car loan. But many people do not think of it in this way.
How to Care of your Vehicle
It is important to take the time to maintain your vehicle in a way that ensures its good performance and longevity. Vehicles that are taken care of and regularly serviced last longer than those that do not receive this care.
Some of the most critical car maintenance reminders are listed below:
- Check the oil and change it every 3,000-6,000 miles
- Monitor car performance after trips and at regular intervals
- Keep the engine clean
- Check your battery often
- Check tire pressure and air filter
These are just the basic things you should do if you want to keep your vehicle in top shape and keep it from stranding you. Mishaps can still happen, but if you check these things regularly, you are less likely to run into trouble with your car, and it will last longer than if you neglect it.
Important Point: A well-cared-for vehicle is also easier to sell!
It's possible you may still have some trade-in value in your current vehicle. Make sure and tell your loan credit services company if you do have a car in good shape that may offer you some equity to use as a trade-in.
About Valley Auto Loans
If you are in need of a good auto loan credit services company, look no further than Valley Auto Loans car financing and credit company. We don't care how bad your credit has been in the past. We are so sure we can help you get the financing you need, that we guarantee fast, secure, no-obligation car loan applications and refinancing right on our site. You are preapproved when you apply online with us, so there's no worrying about not getting the leasing or auto financing you need.
We can also help with refinancing. So if you have a vehicle you need to refinance, we can do that also. Why do we offer such great deals to our customers?
We love getting our customers in the car they want. We can connect you with car dealerships that have fleet cars if you prefer, or any vehicle you want. The main thing is getting approved for your auto loan first. Then we will help you look at all of your options.
How do we do it?
We succeed in almost 100% of applications for our customers because we are connected to a wide array of lenders who offer auto loans. Whether you are looking to purchase, use a rent-to-own option, or lease, we can find the terms and the auto financing you need by using our third-party partners.
Start by applying for a car loan on our site then hop over to our car search link to search for the car you want!
You'll be driving away in the car of your dreams soon!