There is no end to a person's desire.
People
are always on the lookout for commodities that can make their lives
simpler. And most of the people aren't blessed with money, so they opt
for loans.
Today,
buying a car is easy because of lenders. In order to get approved for
an auto loan, you need to provide them with financial information such
as:
>>Your income,
>>FICO score,
>>Current loans, etc.
>>FICO score,
>>Current loans, etc.
Once
a lender analyzes your situation, he will approve you for an auto loan.
But, what if you have an extensive history of late payments and
excessive debt? Then, he will consider you as a subprime car buyer.
According
to the Federal Reserve Bank of New York, the total auto loan amount for
the last quarter of 2015 was $ 1.1 trillion. Out of the total auto loan
amount, 22% was provided to the subprime car buyers. And, with the
rising delinquencies, subprime car buyers pose a threat to lenders’
investment. So, lenders charge subprime car buyers with high interest
rates in order to secure the principle amount as early as possible. High
interest rates put a subprime car buyer in a considerable dilemma of
whether he should apply for an auto loan or not.
What should a Subprime Car Buyer do?
If
you are a subprime car buyer, you must not be hasty in obtaining an
auto loan. Try to improve your creditworthiness. Once you see a
considerable improvement in your financial situation, apply for the
loan. Here a few tips to help you improve your chances of getting an
auto loan:
1. Never Hurry
Lenders
are unwilling to pay for your car because of your credit history. So if
you hurry, they might reject your loan application. Also, there are
chances that they may approve you for a small loan amount and charge a
very high interest rate for it.
2. Try to manage your Current Debt
Take
some time to improve your creditworthiness by managing your current
debt. You can pay off a few of your debts to reduce the DTI ratio.
3. Restructure Your Image at Your Office
It
is an indirect way of consolidating your image before the lenders. When
you apply for an auto loan, they will scrutinize every detail mentioned
in the loan application. If they contact your office to find out more
about you, it is necessary that your employers provide them with a
positive review. So, it is important to restructure your image at the
office.
4. Find a Decent Cosigner
Try
to find a cosigner with a good credit history. It will increase the
strength of your loan application. Also, it will enable you to get an
auto loan quickly.
5. Get Pre-Approval on Auto Loans
Getting pre-approved auto loans
can be the most beneficial thing for you. You can get your loan
application assessed before visiting the dealer. It will allow you to
know your financial situation clearly and help you in making a wise car
buying decision.
6. Try New Lenders
Always
look for new lenders. They are looking for people to lend money and
establish themselves in the market. But, conduct adequate research
before submitting your loan application to a new lender.
7. Keep a check on your Salary
Salary
acts as the deciding factor for getting a loan, so keep a close watch
on it. Also, work hard in order to get a raise from time to time.
8. Arrange a Large Sum of Money for the Down Payment
It
is seen that lenders are reluctant to offer money to subprime car
buyers. It is possible that they may approve you for a low amount. So,
try to arrange as much money as possible for the down payment. It will
help you buy a car quickly and reduce your debtas well.
A
subprime car buyer can get an auto loan. But, remember that the lenders
are going to charge you with high interest rates. So, it is better to
establish yourself as a decent borrower and then apply for an auto loan.
If
you are a subprime car buyer, obtaining a pre-approved auto loan can
become a difficult task. But, CarDestination.com will make it simpler
for you. It works with several subprime auto lenders to give you
lower-than-market interest rates. Apply now and obtain an subprime car loans.
No comments:
Post a Comment