Auto Financing Program for Buying a Used Car – Low Income is NOT a Problem
Comfortable commute - A gift that Man received from the car! A car was a great invention but it became popular because of auto loans. Car financing made car buying possible for everyone. Because of easy auto financing, anyone from a king to a pauper is able to own a car. Don’t think that lack of huge income will prevent you from buying a car. With increasing number of auto financing companies, many people with limited income get approved for loans. Read this article and get a car with your limited budget.
Used Cars – Ideal for People with Low Income
If you earn low income, used cars are the best option for you. Pre-owned car are priced lower than a new car. This ensures a lower auto loan amount. When you have a smaller loan amount, monthly payments will become more affordable for you.
Most people change cars every 2-3 years. This means used cars that are available in the market are not very old. Also, the depreciation rate of an old car is very low. If you are worried about ending up with a lemon, you can opt for CPO cars and end your doubts.
All these points prove that a used car is exactly what you need.
Getting Approval is not a once in a Blue Moon Event
There are many people with low income who get approved easily. And, it’s not because of their luck. Working hard for an auto loan will ensure that you get approved for it. Here are few tips to help you get through the auto financing process.
Work before Applying with the Lender
Budget – Important for every Low Income Car Buyer
Not everyone is born with a silver spoon in their mouth. Most of us have to budget every purchase. And, there is nothing wrong with it. A budget ensures that you never overspend. When you are ready to buy a used car, know your affordability. Understand the amount of money that you can spend on a car. Do remember that payment is not the only expense. You will have to spend money on fuel, repairs and maintenance as well.
List of Documents
Lenders and used car dealers require certain documents to ascertain your credibility. Keep the following list of documents ready:
1. Your ID and SSN
2. Income & Employment Proof
3. Residential Details
4. Bank and Financial Statements
5. Receipts of Utility Bills, if any
Down Payment and Co-signer – Ideal for Approval
No matter what amount of money you earn, your car loan approval chances can be increased by having down payment and co-signer. This amazing duo has the potential to turn the tides.
Make down payment of at least 10% of the total car loan cost. If you don’t have money for making a down payment, use your old car as trade-in. It is an ideal way of avoiding cash down payment. Also,convince someone with a good credit score to become your co-signer.
Apply with a Lender
Before applying with a lender or an online car financing company, make sure that the company offers auto loan options to people with low income. There is no point in wasting time with lenders that don’t offer loans according to your requirements. Also, check the reliability of the lenders.
Work after Submitting the Application Form
Compare Auto Loan Quotes
When you receive auto loan quotes for buying a used car, don’t just consider monthly payments. Do remember to study APR, loan terms and conditions, clauses, penalties, etc. before choosing the best car loan quote.
Choosing a Used Car
When you get approved for an auto loan, it’s time to buy your reliable used car. You can buy a car from a private party or a dealer. Do ask the lender if he is fine with your choice.
Ensure that the title is clean and it’s not a salvage car. Also, ask your trusted mechanic to check the car.
By following this process, you will definitely get the car of your choice despite low income. Hope you get the best auto financing program for buying a used car. Best of Luck!!!
:- Posted by Admin on 14th April, 2013