Auto Credit Information

Auto Credit

One of the largest purchases anyone will make besides a home is an auto purchase. Purchasing a new vehicle can be both exciting. Besides deciding what kind of car to purchase, the major concern becomes how to find credit for the vehicle. There are several ways to find auto credit for the purchase of a new or pre-owned vehicle. A buyer can purchase the vehicle with their own money or they can find a bank, credit union, or other finance company to give them credit for the vehicle.

Personal Loans

If you have money saved up for the asking price, you can write the loan for yourself. You can then make the interest from your loan for the auto purchase. You in essence are both the lender and borrower. You pay yourself back each month and the interest from the loan is put back into your account. At the end of the contract, you have a car, your money back in the bank, and interest from the transaction. That is smart shopping for anyone looking to make a deal.

Company Financing

Large auto companies have their own finance divisions. Ford, Chrysler, and GMC all have divisions that will lend you money if you purchase a car from one of their affiliate dealerships. They usually offer lucrative incentives besides the financing at prime rates. That can be very encouraging to someone who is looking for a one stop opportunity to purchase and finance at the same place. It will save you time and effort. These companies usually offer this service to its premiere shoppers. Usually they are looking for buyers with great credit to get this chance to finance with them.

Local Banks

Most local banks will finance cars for its members. A buyer usually has to have an open account with the bank and have decent credit. Once you identify the car you looking to purchase you take the paperwork to your banker and they will let you know how much they will finance for you. If there is a difference between the amount they will finance and the amount of the vehicle that becomes the down payment you will have to make in order to get the car. You can either let the car owner know you have bank financing or you can take the paperwork back to the bank for processing.

Credit Union

Credit Unions are another good place to shop around for a vehicle purchase. You can start at your credit union by stopping in and letting them know you are looking for a vehicle. They can run a credit check, look at your financial situation, and let you know what they are willing to finance for you. Once you have that figure in hand you can go to any auto dealership to find a car. You can even purchase a car from a private party, online, or from the local paper. Once you have a car that you want to purchase take the paperwork back to the credit union. The credit union will process the needed paperwork and take care of everything for you. Not a bad source of auto credit.

Family and Friends

Sometimes when you are just starting out your family will assist you in buying your first car. Usually, if that is the case, they will control what kind of car and how much you will spend on the car. If they are footing the bill, they know how much they can afford to spend. Family and friend situations don’t involve credit. In this time with the financial uncertainty, no one wants to get stuck with anyone’s bills, other than their own. They will probably write you a check for the amount they promised to give you. Depending on the relationship and the situation you may or may not have to repay the money. You should definitely have an understanding about the money upfront. In fact, you should insist on getting something in writing that spells out what the terms of the agreement are. It should be very clear about whether or not you owe them money or not for the transaction. You will then be able to take the cash or cashiers check to the seller to purchase your car.

Pay Day Loans

Pay Day Loan organizations will also help you purchase an auto. You will need to have a job, be a US citizen, and have a bank account. They want you to be at least 21 years old. The applications are usually quick short forms that you can find online. There are many pay day loan stores in every community. If you choose to go into a store to apply, the process is also easy. They have a quick form to fill out, with a few questions about your residency, citizenship, age, and if you have a banking account. They usually don’t lend huge amounts of money, so if you are looking to them for a loan you will probably be able to purchase an older used vehicle, with high mileage. They process their loans within 24 hours, sometimes shorter. You should have an idea of how much the car costs prior to writing the loan. They will give you a check that you can deposit in your bank to transfer into cash.

Buy Here Pay Here Credit

There are small dealerships that offer the buyer the opportunity to purchase a car with them and also to pay for the car with the same dealer. They usually have very high interest rates, but they can offer you a car that you can usually drive away in the same day. The cars are usually a little older, with very high mileage. The convenience of finding a car on the same lot that you pay for it is great from someone that does not have the means to run to and fro to various dealerships. Your credit does not have to be stellar at these types of dealerships. In fact, they may not require any credit check at all.