Sunday, July 8, 2012

Dealers Do Not Want You To Know -- Zero Down Auto Loans

Most folks think that the purchase of a brand new vehicle is something of dreams or off in the distant future. They are worried about their credit rating or the prospect of forking over a huge down payment. The fact is, most consumers can benefit from and qualify for a zero down payment auto loan.

Many dealers attract customers by advertising zero down payments on new vehicles with low monthly payments. You can see and hear these spiels everywhere, local newspapers, radio, TV, the internet, and just about everywhere else they can tack an ad. Once you get into the dealership, kick a few tires, go for a test drive, the story becomes quite different once you get into the financing office.

The finance manage will simply say that the offer expired, or you do not qualify because of a low credit score. They offer the alternative of a down payment, a higher interest rate, and higher monthly payments than you really do not want. But, you see no alternative at that point. Your drive away from the dealership is pleasant enough; you in your brand new car. In a few weeks, when the first payment comes due, the new car suddenly does not seem all that nice and you feel like a sucker. Meanwhile, the salesmen, the managers, and the owners at the dealership have lined their pockets with bonuses and commissions they get from auto financiers for marking up the interest on the loan. Welcome to the world of auto dealers and auto loans.

Dealers Are Not the Only Source of Car Loans

Smart consumers have a much more pleasant alternative. Auto dealers are not the only venue for auto loans. Other financiers can preapprove you before you even step into the auto dealers lair. What is more, many of these auto finance companies operate online avoiding any intermediaries in the lending process. Customers benefit from lower interest rates and better terms. Another great benefit is that venues exist where you fill out one application and a number of financiers will bid for your business so you get a lot more choice. The bottom line is, these lenders usually offer a lot better terms than your local bank or other more traditional lenders. Using this venue is a way to beat the big banks and their cozy dealers who offer empty promises and lousy loans.

Easy Qualification for Zero Down Auto Loans

Just to keep consumers uneasy, car dealers lead them to believe that only people with excellent credit can get zero down auto loans. Or, they lie or cajole customers into believing that they have special relationships with certain financiers and that they are offering the best deal to be found anywhere. Most lenders who operate online do not care about such shams. They are in the business of making fair money by offering fair loans to as many customers as they can find. They are not likely to make you feel inferior and that they are doing you some sort of favor.

The online folks are eager for your business and are a bit more relaxed in their requirements for zero down loans. They just want to know that you are employed and have an income that will allow you to repay without hardship. Usually, your past credit problems are not that much of a concern. And their approval process is surprisingly quick. You could have a more or less blank check that you would be able to use when you walk into the dealership of your choice the very next day.

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