Bad Credit Car Loan vs. Guaranteed Car Financing: Saving Money?

You’re in the market to buy a new car, and that’s fine. Today, almost everyone who buys a new vehicle needs some form of car financing, and if you find that your personal finances or credit are not perfect, you can still get very affordable car financing if you know how.

An informed car buyer is a smart car buyer. When you know your car financing options and have your car financing set up and approved before talking to a salesperson, you can walk into a car dealership and get a better deal on your terms without feeling intimidated, regardless of your financial situation.

Knowing that you have certain credit challenges should help you understand the differences between bad credit car loans and guaranteed car financing.

Loans for people with bad credit…

Bad credit car loans are typically available through new car dealerships when purchasing a new car or a pre-owned, certified used vehicle. The actual paperwork for car loan financing is handled at the dealership, but generally the bad credit car loan financing contract is sold to another lender. That lender will service and maintain your loan. Loans typically have terms ranging from 24 months to 60 months. The disadvantages of a bad credit car loan are that many franchise car dealers are not set up to arrange these types of loans internally, and interest rates and fees can vary widely, limiting your choices for car purchases.

Guaranteed car financing:

This type of financing is offered directly by smaller or independent car facilities, and differs from a bad credit car loan mainly in that it is offered directly by Your financing contract is provided by the actual car wholesaler, and the loan is paid directly to the car dealer that sold you the car. In other words, you would finance the purchase of your car from the company that owns the car and sells it to you. Guaranteed car financing is used for the purchase of used or used vehicles and not typically for the purchase of a brand new car or truck. Loan terms are shorter than more conventional auto loans, and they rarely offer terms exceeding 36 months.

The main advantage of guaranteed car financing is that it frequently does not require a credit check. Payments are normally made weekly and sometimes in person. One drawback to this type of car loan is that many car dealerships that offer guaranteed car financing will never report your credit to the credit bureaus. As a result, paying on time and developing an excellent payment history will not improve your personal credit profile or credit score.

It’s best to start now and see what financing options are available to you. There are excellent specialised auto financing services available online today that offer a wide range of affordable auto loan programs; even if you have been turned down for financing or if you have bad credit, bad credit, or other financial considerations, you will be amazed at how they can assist you.I’m in the market for a new car.

You now see that there are big differences between a bad credit car loan and guaranteed car financing and that there are other financing options in addition to these. Get approval first for the best car loan for you, then walk to the car dealers and negotiate your terms.

And now I would like to invite you to a free resource where you can compare different car loan programmes and access the leading networks of car financing companies and dealers specialising in affordable bad credit car loans and helping people in the US and Canada buy a car with bad credit.