The boom in the car sales is taken to be an indicator of the increasing riches of the people. Besides the increasing economic prosperity of the people, the other most important reason for the increase in the sale of cars is due to the easy availability of the car finance in very affordable monthly instalment. Even the down payment amounts may not be required or it might be quite less. The people, therefore, prefer taking the car loan rather than making the full payment in one go.
The first document that most car finance companies look for is a proof of your income. Of course who would want to approve you from your car loan application if you don’t have a job right? The lenders will see if you are truly employed or not. Proof of income document will show your gross and net income, so the lender can decide whether you are capable of paying the car loans with bad credit no money down by muscle car facts, otherwise your application will be denied. A month pay stub is the most common requirement.
Choices: When opting for a used car, you should avoid choosing a SUV as a first car. The reason is that the monthly payments required to pay off the loan amount of that SUV will not only eat up your income, but the expenses on the gas will be too much to afford. Therefore, research a little on the cars before you decide. You can also visit the local dealers or a used car lot and check out the available cars there. Make sure that the dealer is a reliable one. When you find yourself flooded with choices, think logically and compare the features to get the best deal.
A second alternative is to put up a down payment on the car. If you have enough to put up 20% to 30% of the cost of the car, most dealers and sellers will take you very seriously. You will find they can accept a number of issues on your credit report if you have the money to pay toward the purchase. This significantly mitigates their risks and they suddenly see the transaction as something they want to do.
And you also have to consider that the process can get very expensive, more so if you use an attorney. The procedure is not free: the fees that Courts charge have gone up in the last few years.
Try thinking the morale of this story. A young engineer who got married with a beautiful wife who is not working. They live happily without having too much trouble paying monthly bills and the husband has no problem providing food on the table. After a year, his wife gave a birth to a beautiful daughter. Unfortunately for him, his wife has to undergone a surgery to delivered the baby since she could not gave a normal birth.
Then consider getting “pre-Qualified” at your bank or credit union. Shopping for a loan should be your first step to shopping for a car. The dealership should be your last place to look for a car loan. If you know how much money you can spend, it will allow you to effectively bargain with the salesperson. Knowing how much money you have available is the best bargaining tool there is. They want to sell you the car, but you need to set the limit. When you are pre-approved by your bank or credit union, you have the leverage – not the dealership.