What do you do when you need to buy a car, but have less than great credit? Do you settle or do you find a way to get a great car and improve your credit score at the same time? We think that you should take advantage of the guaranteed financing program offered by All Star Dodge near Ballwin. Let’s take a look at what guaranteed financing is and how it works.
What is it? – It is typically a free service and is currently available primarily to borrowers with poor or bad credit. Companies offering guaranteed car finance allow buyers to request the amount of credit needed to purchase a new car. The terms of the agreement with guaranteed car finance lenders are not limited to purchasing the vehicle from the lender or dealer. A new buyer is permitted to shop elsewhere and bring in their outside loan agreement for financing.
How does it work? – “The loan agreement is a contract for hire arrangement where the finance company takes ownership of the vehicle during the loan period. The company charges a monthly rental fee to the borrower in exchange for use of the car. The monthly rental fee is comprised of the loan amount plus an interest and financing charge.”-carsdirect.com
As the loan balance is paid down, it is the responsibility of the borrower to maintain the vehicle in accordance with the terms of the contract for hire. This arrangement works for both the borrower and the lender. The finance company receives a tax deduction in consideration of the value-added tax levied on the vehicle’s value, while the borrower does not increase his or her net asset value since ownership resides with the finance company.
To take advantage of the guaranteed financing program stop by All Star today!