Blank Check Auto Loans: Loan Requirements

Blank check auto loans have requirements similar to any typical auto loans. There are some basic requirements and these include that the car must be at least worth $7,500. Most lenders will only allow you to buy your chosen car from an authorized dealer, not independent used car dealers or private party sellers. There are some exceptions but check with your blank check lender first before starting to shop.

Additionally, blank check loans are not available for commercial vehicle, motorcycle or recreational vehicle purchases. The vehicle cannot be more than 7 years old or have more than 70,000 miles on the odometer if used. Individual lenders will have different sets of criteria determining an individual's credit worthiness. An important tip would be to obtain a personal credit report to check for any adverse entries that you might be able to correct before beginning the process.

Once approved, the lender issues a "blank check" to you that will be filled in once you've selected a vehicle and made a deal with the seller. You've been approved for a certain maximum amount, but you do not necessarily have to spend this sum. If your maximum approval was for $25,000 but the purchase price of your new vehicle is $21,000, then your loan will be for that latter amount.

Obtaining a blank check loan prior to shopping allows you to know your "exact" spending limits. Depending upon the amount you will use as a down payment, your blank check pre-approved maximum loan amount allows you a negotiating edge when meeting with your prospective car dealer. Instead of shopping for a car and then determining if you can be approved for its purchase, time is saved because you know your spending limits. Furthermore, obtaining a blank check loan locks in your interest rate allowing you to shop without the extra added pressure from daily rate fluctuation. Also, your financing approval is based on criteria the lender sets examining your credit worthiness and not based on the car's price tag. It relieves you from any frustration or anxiety attempting to possibly finance a vehicle that your lender ultimately believes is beyond your financial reach. Also, the blank check loan amount can also include all taxes, licensing and registration fees and other contract costs like credit insurance, warranty and service contracts plus other fees.

An important aspect about blank check loans is that they are only valid for a certain amount of time, usually up to 45 days.

Through the convenience of Internet browsing, you'll soon gain enough knowledge about various blank check auto loan lenders to make your loan application online. Many lenders will have an answer to your loan request in moments.

With this information, you'll be on your way towards purchasing that new car you've been wanting for some time.