The purchase of an automobile can easily be one of the most important and largest investments that you will make. Due to the size of this purchase, there is a high likelihood that you may need to use financing to be able to finalize the purchase.
Myth: A Bankruptcy Filing Will Always Mean It Is Impossible To Get Approval For An Auto Loan
A person that has a bankruptcy filing in their credit history may assume that they will not be able to receive approval for their auto loan as a result of the bankruptcy. However, the impact that the bankruptcy filing will have on the loan application will vary based on several factors. One of the most important will be when the bankruptcy was filed because those that were filed more recently will have a stronger impact on your application's approval or rejection. Furthermore, your credit history following the bankruptcy filing will also be an important factor. Those that take rebuilding and re-establishing a solid credit history seriously may find that their actions since the bankruptcy filing will be enough to get their loan application approved.
Myth: Used Cars Are The Hardest To Finance
In order to reduce the costs of buying a car while still ensuring that you get a reliable automobile, buying a used car may be the best option. However, shoppers may assume that the process of financing a used automobile will be very difficult and much more difficult than what is needed to finance a new car. In reality, the process will be almost the same. However, a used car may actually be easier to get approved for. This is due to the lower value of a used car, which can reduce the total amount of the loan that you are needing. Increasing the size of your down payment can be another option for making it easier to get financed for this purchase.
Myth: It Is Not Possible To Refinance An Existing Auto Loan
At some point during the time that you are paying down your loan, the market interest rate may drop. As a result, this can create a refinancing opportunity that can significantly reduce the total amount that you will pay for the automobile. Unfortunately, some individuals assume that refinancing an automobile loan will be impossible. However, the process is actually similar to what you would do to refinance a home. You will need to reapply for a refinancing loan that can be used to completely pay off the existing auto loan, but most auto lenders can accommodate individuals that are needing a loan to refinance their car.
To learn more, contact a lender that offers bad credit auto loans.