It’s a common problem with younger people today, they want to get a vehicle but don’t have a credit history to be able to take out an auto loan. What are these people to do? They need a car, truck, or SUV to get to their job, but don’t have enough credit or credit history to make it happen. The solution is simple, head to All Star Dodge near Ballwin and take advantage of their guaranteed financing program!
Not everyone knows or understands what guaranteed financing is, so we want to explain it! Basically (and we are making this really simple here) the auto dealership works with a vast network of lenders to find an auto loan for everyone, no matter their credit. This means that bad credit or no credit applicants can get a loan and improve their credit score! There are a few things that are taken into consideration with guaranteed financing:
- Down Payment – The first thing a lender offering a guaranteed car loan will do is work to decide a down payment amount that covers enough of the cost to make the risk worthwhile. The down payment may be high for someone with serious credit issues, though lenders can usually work to come up with a down payment number that will work for both parties.
- Interest Rate – Interest rates on guaranteed loans designed for people with bad credit can be higher than traditional loan rates. Second chance lenders will raise the interest rate to accommodate people with serious financial problems who wouldn’t be able to get a loan through other means.
These are just a couple of terms that are taken into consideration with guaranteed financing. For more information, head to All Star and work with a member of their financing team!