When buying a car, lenders want to know that they can rely on you to maintain the monthly payments. That is why if your primary source – or only source – of income is disability, they may have a problem approving you. The problem lies in the income you are receiving. Disability, unemployment, workers compensation and retirement are just some examples of income that cannot be garnished. Lenders need to have the ability to garnish your wages in the event that you stop making your loan payments, and they cannot do this with these types of income. There are a couple ways you can improve your chances of getting approved for a car loan, even if you are receiving disability payments.
Since a borrower’s income and bills as well as the lender and lending tier all have to be taken into consideration, there is no way we can know, ahead of time, what a borrower’s approval amount might be.
How can you get the most out of your tax refund? It may work to your advantage to put it towards your current auto loan. If you have other debt to consider, you could pay off your remaining balance, or, if applicable, you could eliminate negative equity.
For any number of reasons, you may be thinking about buying a second car for your family. And while this may be a sound decision, it is one that you should make only after really thinking about the cost and real necessity of such a purchase.
If you are relatively new to this country, there is a very good chance that you don’t have much of a credit history yet. And, unfortunately, this can make it difficult to get financing for an automobile. However, there are options available that will allow you to both get an auto loan and build your credit.
Since a borrower’s credit background, income, bills and vehicle all determine what their monthly payment will be, there is no way of knowing what their monthly payment will be.
Seven year car loans are on the rise, and it makes sense as to why this is happening. With the average new car price being around $30,000, car buyers have to extend the loan term in order to reasonably afford the most current vehicles the auto industry has to offer. Everyone needs a car, and for those who have a low income or bad credit, the 84 month car loan term seems like the best way to go about achieving that goal. With a lower monthly payment, car ownership becomes a possibility, and makes daily life easier. But does the longer payment term really make things easier? Or are you just paving the way for disappointment in your financial future?