It is possible to avail approved any credit auto loans? Yes it is. It's also possible that you can get ripped off if you're not particular concerning the lender that you decide to appoint for your car loan. You see, it's not concerning whether or not you'll be able to gain approved. It's regarding "where" you can get approved that makes the difference among paying high rate of interest and gaining something which is reasonable. For availing bad credit auto loans or no credit car loan, with no money down, you should to know a few things.
There are just two reasons that a dealer would ask for a down payment. The most common reason is because it adds income to his sale. The other less common motive is because it's required to lower the total amount financed for approval through the lender. Most individuals consider that if they are having bad credit, they need to make use of the financing offered by the car dealership. They think local bank won't give a loan however bank can offer you guaranteed car financing. This is the most common mistake which would cost you thousands of dollars in outrageous finance charges.
Most of car dealerships mark up the cost of the car. Everybody knows that. Did you know that they even mark up the rate of interest? Of course, they do. They put forward your credit request to lenders. The lender responds by an offer. Let's say that they agree you for a rate of 9%. Guess what? The dealer, knowing that you're having bad credit they will try to convince you that you're approved at 12%. The 3% difference turns out to be there profit which the finance manager gets paid a commission on. Your payments rise up 10, 20, 30, 50 or even $100.00 each month just because the dealership marked up the rate of interest. You can get auto loans for no credit and bad credit that too with no down payment and with lower rate of interest through avoiding the dealer finance department altogether.