Two guaranteed car finance options: pre-approved auto loans so you can choose where to buy your car or guaranteed car financing through a car dealership in your area that specializes in bad credit car loans for people with bad credit, those who are self employed, those who have recently started a new job or have already been declined by other dealers and financial agencies.
Pre-approved Auto Loans Through Guaranteed Car Finance Companies
It will depend where you live which company you can choose and how it works. I’ll talk about the US market in a minute, but first the UK.
Guaranteed Auto Loans in the UK
For guaranteed car finance UK residents can take advantage of, there are several online options where you can begin, like Net Cars who offer a variety of options on car loans for both new and used cars. How it works is that you will provide your basic information and the online company will search for a finance company to match your needs, assessing also how much available credit you have, thereby determining which cars you can select. The idea is that you are pre-approved for a certain amount even before you select the car.
Then you select what vehicle falls within your budget. You may be able to get discount prices on new and used cars directly through the people who help you to secure the loan, like Net Cars, because they also have connections with car companies, manufactures and dealers that offer reduced prices, thereby lowering the amount you need to borrow. They will have submitted applications for financing to a variety of companies in order to secure for you the most competitive interest rates, even if you have some bad credit history. They specialize in securing car loans for self employed and other difficult to finance cases. Places like Net Cars cover applications for guaranteed car finance all across the UK and also include helping to secure the best insurance for your needs. Guaranteed Car Finance is another company who offers you the flexibility to shop for your own vehicle and buy from whomever you choose. They only handle the loan approval process.
A Note About Car Loan Interest Rates
If you are searching for a private company that offers auto loans or need help in securing financing to buy a car, chances are you already know that your bank and more conventional methods will not work due to a variety of factors like bad credit or short term employment history. Therefore you must be aware that you will not be offered the same low interest rates that you might get through a bank or through a car dealer who has a contract with a specific financial institution. Your bank can offer you a guarantee car finance package if you have a good history with them, and this will be your best option, but if you have a less than perfect record and have already been turned down then the online options may still work, although you’ll pay more interest.
Guaranteed Car Loans in the US
In the US, there are companies who operate online and provide a similar service as the ones in the UK. However, their main focus will be to secure your financing and pre-approval that will allow you to select your own dealership. They primarily assist in guaranteeing that you have a loan and the car itself is up to you to find. That said, there are companies in the US that offer a service similar to the one in the UK, where they have financing packages for difficult cases as well as car dealers who offer discounts and pass them on to you. Financing Auto Loans and Gimmearide are for US or North American citizens who qualify.
Although you may have a poor credit history these companies can help if you have a minimum income that falls within their guidelines, about $1,200 – $1,600 a month, are employed or self employed and can prove your income and have not had to file for bankruptcy. You will be able to get approval in most cases, however you will pay up to 4% (or more) than average interest rates. If you use the car loan calculator that many websites offer, you will see how much this will affect the overall price of the car you wish to purchase and if it’s worth your while. You may however choose to start with a high interest rate loan and then find other auto refinance options later when you have reestablished your credit.
Selecting Your Car Once You have Financing Approved
In conclusion, if you can get guaranteed car financing through your bank this is your best option, if you have been declined or have a poor credit history then get several quotes on guaranteed car finance packages through online companies and secure the lowest interest rate possible. Yes Guaranteed Auto Financing is one of the most popular companies that can help you, although you must purchase your car through one of their car dealers or their online car inventory which may or may not have the vehicle you desire. They are able to approve many special cases even people with really bad credit, but a recent bankruptcy will make approval difficult.
Choosing your car will be more difficult if you must buy from a small group of dealers or the options offered by the online company. To be able to choose where you buy your car, try getting financing through a company like Guaranteed Car Finance if you are in the UK and Financing Auto Loans or Capital One in the US who have a list of dealerships across the USA offering such cars as Lexus, Land Rover, Mercedes, Audi and many other top car dealers.
