1) What are the interest rates for my auto loan?
Interest rates are influenced by several factors, including the severity of credit problems, the amount of down payment, and the degree of credit risk. Your auto loan expert will explain these factors, and tell you exactly what your interest rate will be.
2) How long does the application process take?
You will be contacted very promptly by our credit specialist who is handling your loan request. The approval process is usually within several minutes to a few hours.
3) Can I get an auto loan even if I have bad credit?
Of course! Our lenders will work with you every step of the way to help you get approved.
4) Will it help if I have a co-signer on the loan?
If your co-signer has good credit status, this will definately help your chances of getting an approval.
5) Are there any fees associated with your auto loan application?
This is a completely free service.
6) Can I apply for credit while I'm in Bankruptcy?
Yes, as long as you have made at least 6 payments to your trustee & have their permission.
7) What is the minimum income to qualify?
$1,800 gross before deductions.
8) How do I get my credit re-established or established?
We deal with reputable companies that report to the credit bureau every month as opposed to companies that do not report to the credit bureau.
9) How long does the process take?
Once we have your application we work hard to secure an approval in a timely & efficient manner. We have 12 different lenders competing for your business & as a result we can pass the savings onto you. On average we can have an answer back within a couple of hours.
10) What do I need to apply?
You will need a valid driver's license, 2nd piece of id, proof of income, & a bank account for automatic withdrawal.
11) Can I purchase a new vehicle?
Yes we have over 300 new vehicles to choose from.
12) Do I need a down payment?
We have $0 down plans O.A.C.
Facts About Credit
Overview
Vehicle loans are a part of the equation in the vast majority of new and late model used vehicle purchases. Interestingly, consumers will spend days shopping vehicle prices, yet many do not shop auto loans. Comparison shopping and pre-qualifying for an auto loan should be the first step you take when buying a car, not the last. Failure to do so can be costly, as financing is one of the most frequently missed car buying opportunities. An auto loan is a unique part of the buying equation and it requires that you focus on it as a seperate issue. Reduce your monthly payment by just $16.70 and you will save $1,000 (on a 60 month auto loan).
Loan Basics
There is no great mystery to auto loans, if you purchase new or late model used vehicles, you are quite familiar with them. Nonetheless, it is important to understand the main components of an auto loan.
The five elements covered in this sub topic are the basic parts of an auto loan. Understanding them and how they relate to each other will help you to effectively shop for an auto loan.
Annual Percentage Rate (APR)
The Annual Percentage Rate (APR) is a yearly rate of interest that includes all of the fees and expenses paid to acquire the loan. Federal law requires lenders to disclose the APR. The APR is essentially the ONLY rate you will need to compare one loan (of the same length) with another, because it includes all of the costs associated with acquiring the loan. This makes it very easy for anyone to compare most loans.
Down Payment
The down payment is the total amount of money that the borrower puts down towards the purchase of a vehicle at the time of purchase and origination of the loan. This does NOT include any credits for trade equity or rebates and incentives.
NOTE: The down payment is credited to reduce the final sales price of the vehicle AFTER it has been adjusted to reflect taxes, trade inequity or any other expenses. Many people forget to factor this in when developing a budget and other additions are made to it -- the principal, NOT to the final sales price.
Interest Rate
The interest rate is a part of the APR equation. Interest is the annual rate of return that the lender receives on the Principal of the loan.
Loan Term
Loan Terms can be 36, 48, 60, 72 or 84 months.
Principal
The amount of the auto loan, without the interest factored in. In other words, the amount you are financing, the amount that you WILL be paying interest on. This is arrived at in the following way.
Determine the vehicles final sales price: ADD all relevant fees (taxes, titling obligations, trade inequity, etc.) SUBTRACT amount of down payment (if applicable) SUBTRACT any trade equity (if applicable) SUBTRACT any rebates or incentives (if applicable)
The number that you reach after this process will be the principal. This process may vary slightly from province to province, based on how the final sales price is determined for provincial (vehicle) sales taxes. MOST provinces tax on the sales price prior to any reductions (the highest amount). SOME provinces will allow the final sales price to be reduced by equity of the trade to PRIOR to determining the (vehicle) sales tax.
