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Types of Special Financing Car Loans

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In these economic times, it can be challenging to maintain a good credit rating. However, job losses, illnesses, bankruptcy, divorce,  no credit history and other financial issues crop up in the lives of most families, and it can be difficult to keep a good credit score during these times of trouble. Individual still needs reliable transportation to get to work or take your kids to school, and you might think it is impossible to qualify for financing when you don’t have any cash and your credit score has dropped.

The good news is that you can find second-chance or bad credit auto financing companies that are willing to provide money to people without great credit histories. In fact, obtaining an auto loan is one of the best ways to build or set up good credit in the future. At Valley Auto Loans, we specialize in helping people find the best possible car loans in a variety of situations like Self Employed loans, Student auto loans, Bankruptcy Loans, High Risk and No Credit Check Loans and we can offer the best information about special financing like In-House Financing, Tote-The-Note Financing, Zero Down Financing, Financing with Child Support and more. All these topics can be found in this Special Financing information guide under the appropriate heading to help you make the best financial decisions when you are looking for special financing auto loans.

Types of Special Financing

Auto loans are a type of secured debt. This means that the loan is actually secured by the vehicle that is purchased with the loan. Mortgages are another common example of secured debt. In that case, the mortgage is secured by the home it is used to purchase. Contrast that to unsecured debt like credit card balances. Credit bureaus and finance companies tend to look more favorably on secured debt when they calculate credit scores or decide who to loan money to. This is partly because secured debt is already backed by a valuable asset. There are several reasons that secured debt is more favorable than unsecured debt, and these include:

  • Credit bureaus and financing companies understand that most people cannot afford to pay cash for expensive and essential items like houses and cars.
  • The items that secure the debt should have value while the loan is getting paid off.
  • Once a secured loan gets paid off, the credit does not automatically renew, but one paid loan can make it easier to secure another one.
  • Interest rates for secured loans tend to be lower than interest rates for unsecured debt.

Bankruptcy Auto Loans

Bankruptcy doesn’t have to be the end of the line. Fortunately, consumers who have filed bankruptcy no longer have to settle for traditional lenders. Valley Auto Loans wants to help people who have filed bankruptcy get the financing they need to get behind the wheel. We’ll help you get your new beginning. The timing of your car loan is just as important as the amount of money you’ll be paying each month. If you plan to finance a car after your bankruptcy is discharged, you simply will need to present the paperwork to the lender and assure him of your ability to repay the loan. If you’re still going through bankruptcy proceedings and desperately need a vehicle and accompanying loan, the type of bankruptcy will have an impact on the kind of car loan you can get.

We can give you the best advice for finding a bad credit auto loan if you are involved with a chapter 7 or chapter 13 bankruptcy and explain the process for getting approved.

Child Support Auto Loans

Many borrowers who receive regular monthly child support payments report these payments as income on their loan applications to boost their chances of qualifying. However, sub-prime lenders view this type of income differently than income earned through working. The reason is these wages cannot be garnished if a default accrues. We can show you haw to avoid this type of trap and the best way to handle your Child Support.

High Risk Auto Loans

Learn about the High Risk Auto Lenders that are right for you when you need special financing.  people who have no credit history or poor credit, make it necessary for lenders to create special conditions to help set up credit for those needs. However, that does not mean that dealing with these companies is a bad idea. You might expect to find that interest rates will be somewhat higher than those offered to car buyers with very good credit, but you might use these poor-credit loan offers as a way to rebuild your credit, so you can get low-interest rates the next time you need to buy a car. We want you to be informed about Choosing a Lender, Tips for Getting the Best Deal. Refinancing your loan, Co-sighing and more.

How This Rebuilds Credit

  • Each time you make a payment on time, this gets reported to major credit bureaus like Experian, TransUninion, and Equifax.
  • Over time, my good payment record has a positive impact on my credit score.
  • When it comes time to apply for my next auto loans, all sorts of lenders will be eager to work with me because I have re-established a good credit history.
  • I may even be able to refinance my car loan at a lower rate after making payments for several months.

What Kind of Cars Are Available

Not only can a special financing company help you rebuild your credit, it can actually help you get back on the road in style. Some people assume that they can only afford old, worn, and even unsafe cars without good credit. This is actually not true, and you might even find that you can get better rates if you purchase a new or like-new used car than if you buy an older vehicle.

Getting A Better Quality Car

Lenders consider the financial situation and credit rating of borrowers. But they also consider the type of vehicle that will end up securing the loan. If they are going to provide you money, they would rather have you purchase a more reliable and more valuable vehicle that is likely to outlive the term of the loan. This gives them more assurance that the loan will not put you in a bad situation because your car won’t run or need to be replaced before the loan term is over, and that makes car financing companies more eager to have you as a customer.

In other words, you may very well be able to use a high-risk loan to buy a very nice car. This might be a new vehicle right off the manufacturer’s delivery truck. In other cases, it might be a late-model used car. Either way, you can drive out with a reliable and safe vehicle that you can be proud of.

How to Find the Best Deal

You might be able to find loan offers from local dealers who deal with people who do not have ideal credit. They may even offer in-house financing or work with special car lending companies of their own. However, you are never obligated to take advantage of financing from a dealer. You are free to bring in your own loan offer.

In fact, some auto dealers may figure that they have a captive audience. They might offer poor credit car loans, but these may come with harsher terms, higher interest rates, and larger payments than you could get if you shopped around. You could shop by driving around from dealership to dealership, but this can be frustrating and time-consuming.

In House Financing Dealerships

In-house lenders exists for two reasons. Dealerships want to sell more cars to more people. And there are responsible, hard-working people out there with damaged credit that need to buy a car. If you’re dealing with an ethical business, it can be a win-win for everyone. If it’s a buy-here, pay-here dealership, you purchase your vehicle through the dealership instead of a third-party lender and you probably won’t be repairing your credit score.

In order to rebuild or repair any bad credit issues or even no credit history issues that you have you must use credit and keep it in good standing for a period of time. This is why it is important to get a High Risk auto loan to rebuild your credit. When you make your payments and pay down the lone over time you will build a good credit history. In-House loans won’t do this for you because your loan will not be shown on any credit report. We can show you how to avoid this.

No Credit Check Car Loans

Lets look at how dealers can offer a car loan without checking an applicants credit history. We will explain how No Credit Check Loans are possible and how to qualify. The effects they will have on your loan over the term of your contract. If it will help your poor credit history and earn you good credit status. We will also explain Buy Here Pay Here and its advantages and disadvantages. We will also show you how to qualify for a good traditional loan to rebuild your credit.

Self Employed Car Loans

You can get an auto loan for a new or used car with a bad credit history, even if you are self employed but you may need some instruction on how to show your income and how to repair your credit status. Let us show you how to prepare all the necessary information to get an auto loan even it you are self employed or a private contractor and don’t have a W2. We will also explain why self employed people get treated like they have bad credit even if they make a lot of money and what you can do to avoid this trap.

Student Car Loans

There is no need to use your student loan funds to purchase a car while you are still in school. You can obtain an auto loan for college students to cover the purchase. Complete a Valley Auto Loans application on the site and allow us to find a lender that will work with you. Our lenders meet you where you are – in your current situation. They understand the challenges you face as a student, and they can help.

As a student, you probably lack the necessary credit to get a traditional auto loan, but don’t give up before you get started! Many options are available to students who lack the credit history often required for a car loan. You just need to know where to look.

Tote The Note

Tote the Note dealers auto financing for bad credit borrowers. There are some major differences between traditional and tote-the-note deal car dealerships. A traditional dealership caters to consumers who have fair or good credit. On the down side, tote-the-note dealerships completely skip third-party financing options, but they also do not report to the major credit bureaus, accept almost any type of credit situation and provide consumers with a unique shopping experience. Let us share with you some of the basic information in dealing with a Tote The Note loan.

Zero Down Car Loans

If you decide to purchase a new car without a down payment, shop around before agreeing to purchase. Many car dealers will attempt to trick you into a loan with a high interest rate, which is why you should check several dealers and negotiate not only the price of the car, but the loan terms as well. Auto loan brokers such as Valley Auto Loans can search auto loan lenders for you so you won’t have to spend your time running around. Many financial advisers recommend that you arrange financing by getting pre-qualified for an auto loan before you visit the dealership as that often provides for better negotiations.

Our Customer Reviews

Happy Camper

Finally! I have found an auto loan company to help me finance my car. Valley Auto Loans totally helped to ease the car buying process for me with professional staff and wonderful customer service.”
- Rebeka Jones

Better than my last provider

I enjoyed dealing with Valley Auto Loans, previously I had dealt with another well-known finance company, and had a nightmare. Using Valley however was very straight forward and the staff were pleasant to deal with.”
- Tommy Lee

Simple and Easy

My wife and I have poor credit. However, the application was simple and the process was easy. In no time we got into another vehicle all thanks to Valley Auto Loans.”
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