Car Lot Finance

Auto Finance

Qualifying for auto finance is often one the thing that stands in the way of most prospective car buyers. In today’s economy, it’s not typical to find consumers with a lot of extra money saved up and ready to dish out on the car they’d like to purchase. Auto finance options from loans to buy here pay here auto lots have opened opportunities for those who have trouble affording cars. Usually, qualifying for loans is dependent on your income and credit score. Your credit score depends on a number of things. How long you’ve been using credit cards, your debt to income ratio, and your payment consistency are all things creditors take into account when calculating your credit score. Additional auto finance qualifications may also require proof of financial stability. A customer who has proof of at least one year of residency at his or her current address and a regular pay check with a fixed income will generally qualify more easily. Often, lenders will require that the customer makes at least a certain amount of money per month above the monthly payment amount to ensure payments can be made alongside regular living expenses.


Applying for a car loan is like applying for a job. Don’t stop at one and feel defeated if you are turned down. Apply for loans at your bank, local credit unions, and lenders that work with dealers. Be sure to apply for your loans all in one short time frame so that credit bureaus can see you are trying to qualify for auto finance. Multiple applications spread out over a long period of time tend to look bad and lower your credit score.On the application, you will have to provide information on your income, monthly expenses, rent or mortgage, and employment. Do not exaggerate your income or under quote your debt as these things are verified. The lender checks everything using your social security number and will decide how reliable you are from what they find.


When looking at loans, consider the term length, not just the payment amounts. A longer loan might offer a lower monthly payment, but you will pay more interest in the long run. Some loans have a pre-payment penalty, a fee that is charged if you pay off the loan too quickly. Being able to pay off a loan early doesn’t happen often, but if you somehow find yourself in a position to do it, it can save you a lot of money from interest. However, you want to make sure that the lender won’t charge you a fee for doing so.While most loans that dealers offer have great rates, if you show up with a pre-approved loan from your bank, you are more likely to have a smoother car buying experience. The dealer has the opportunity to give you a better loan option, but if they do not, you already have your own.


To find the best auto finance deals on used cars in Charlotte NC, use our innovative tools to find your next vehicle.