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How to Use a Guaranteed Car Loan for Your Next Car?

When you try and buy a car with a guaranteed car loan the first thing that you should remember is that your credit record will have no bearing on same.It could be quite easy to find providers of such loans in the area where you are living at present. The biggest source obviously is the internet. The major reason for such a statement is the fact that you do not get more shopping opportunities anywhere else in the world. The process to qualify for these loans is a lot less strict than what they are for other kinds of loans such as the traditional ones. 

Proof of income 

One of the biggest factors as far as qualification for these loans is concerned is your proof of income. You have to say that at the very least you would be able to cover the monthly payments. Normally lenders look at how long you have been with an employer – the longer it is the better it is. It could also mean that you have better rates of interest to deal with. The second important thing that can help you in these cases is the ability to make a big enough down payment.

The importance of down payment 

As far as bad credit guaranteed approval is concerned this happens to be an important factor as well. No matter who you is taking the loan from you is always going to get liked if you are able to put down a sizeable amount of down payment. Normally lenders who provide these loans have a high amount of risk to deal with since they know nothing about your credit record. Their exposure to risk is much higher than what is the case with lenders who operate with traditional loans. When you are able to make down payment it shows that you are honest about paying the loan back.

It is also a major proof of the fact that you intend to be serious about owning the car that you have bought on loan. It also tells the lender that you intend to pay the loan back. After all, you would not do this if you did not want to own the car ultimately. There are some lenders in this domain that do not need a big down payment as such. So, it would be better if you shopped around to see whom you can afford. 

The presence of warranty and similar hedges

Most of the dealers that offer car loans on a guaranteed basis also offer warranties for the vehicles that they are offering on loan. They normally do this because of their own interest. They have seen that people are likelier to be updated with their loans if they do not need to shell out significant sums of money in order to repair their cars. The warranty is proof of the fact that the car happens to be in decent enough shape. There is very little chance that a dealer would be in business if he were handing out warranties on poor cars.