How Can I Obtain a Suitable Car Loan?

How easy or how hard it would be for you to get a car loan is totally dependent upon your credit score. The banks look at your credit score and if your score is less then 650 you would be considered subprime. Most banks will give a car loan only to prime applicants. But don't despair since there are other lenders and some are more lenient than others. Keep in mind, now that you know you are subprime you know that you have bad credit, and you will perhaps have to look for a car loan lender that caters to those with bad credit. This will, of course, mean the payments may be higher due to a higher interest payment.

When you have decided to go to the dealership for that car be careful of the usual dealership scams that may have you ending up paying too much for that car. Be sure to ask about the interest rate, term of the loan, what down payment is needed, are there any rebates and what your monthly payments will be. Be careful of additions such as extended warranties, rust protection, undercoating, fabric protection and paint protection, alarm systems and window etching. The dealer will also offer you life and disability insurance. Think about what your total cost will be for your car loan if you agree to it all.

Always make sure you have signed a completed contract, so that when you get home you will not get a phone call from the dealership saying your loan did not go through and the car will have to be brought back. In order to keep the car you will have to sign a new contract and give more of a down payment and now your car and the car loan has again, cost you more.

When shopping for that car loan the saying "buyer beware" applies every time.