Second Chance Loans and “Guaranteed Financing” in Fayetteville, TN
If you need a second chance at an auto loan, you might want to consider a bad credit loan or “second chance loan”. Whether you want a bank-financed or dealer-financed auto loan, our team will help you get the right vehicle financing for your unique situation.
Bank-financed loans are sometimes called indirect lending. In these types of loans, you’ll make your monthly payments to a bank (or other outside creditor) that holds your car’s title for the length of your term. You might want to consider a bank-financed loan if you’re planning on buying a new or late-model vehicle; banks will give better rates for younger vehicles because they know that shoppers are more likely to keep up with their monthly payments for a newer, more reliable vehicle with low mileage.
Dealer-financed loans, also called direct lending, are loans in which you make your monthly payments to the dealership where you bought your car. If you’re planning on purchasing an older car or a used car with higher total mileage, you should consider a dealer-financed loan. Many shoppers with bad credit choose dealership-financed auto loans because the dealership can often guarantee financing when other lenders cannot; though dealer-financed loans often require a higher down payment in relation to the vehicle’s value.
No matter what kind of car your buying, keep these tips in mind when you shop:
- Before you shop, know your credit score and the contents of your credit report
- Buying a car with a second chance loan is different than buying a car with a conventional loan; your lender will look into your income and current debts and will budget you for a monthly payment that matches your credit situation
- Research insurance prices on comparable cars in the price-range you’re approved for, insurance rates can differ greatly between various makes and models.
- If you’re buying a used vehicle, have it inspected by an ASE certified mechanic before buying