For those who live on a tight budget, this is the time of year where the window of opportunity opens up for larger purchases, like an automobile. And if your credit isn’t in any condition to help you get approval for a zero down financing offer, this window doesn’t stay open for very long. This is why your tax return could be just what you need.
You may have heard the term, “Same Day Auto Loan” before, but what does it mean? It can accurately describe two different loan scenarios, referring to simply a loan that is approved within 24 hours or a specialized loan for bad credit buyers. This distinction is important to realize as you are shopping around for the right loan to fit your situation.
Instead of thinking of a down payment as a hurdle, car buyers with credit issues should think of a down payment as a way to save themselves money as well as a way of contributing to the success of their credit repair efforts.
Unless they report all of their income, credit-challenged consumers who get paid under the table will find it very difficult getting approved by a subprime lender. But there are acceptable alternatives including paying cash as well as getting financed with a BHPH dealer that reports to the credit bureaus.
While much has been made of Generation Y’s aversion to debt, debt is not something any generation can easily escape especially when considering a vehicle. So then what are your options when confronted with financing a car?
The New Year brings with it, in many cases, additional requirements for subprime auto loans. This means that borrowers with credit issues should typically be prepared to furnish the previous year’s W-2 in addition to their most current pay stub.
If your new car, truck, van or SUV is stolen or totaled in an accident, your insurance company will only pay for the current market value of the vehicle. This means that you could potentially still owe thousands on a car you can no longer drive. However you might have a different story if you purchased Gap Insurance.