A guaranteed used car auto loan is a loan that is partially given by a bank or another institution that accepts the obligation for repaying the loan if you should default on payments. The auto loan pre-approval process is different for guaranteed auto loans than for others (like a pre-approval bad credit car loan, for instance.) You'll likely face additional penalties and other stipulations with a guaranteed loan. Though, you'll have the potential support of another business or bank if you are unable to make your loan repayments per the agreed upon schedule. Follow these steps to obtain a guaranteed used car auto loan.
Step 1 -- Find the Best Lender
There are a huge number of guaranteed auto loan lenders in all parts of the country. You will have the best luck and the most reasonable offer if you search from amongst a wide selection of lenders before making your decision. Research different lending companies and compare their interest rates, loan repayment plans and any other factors that may be important in your considerations.
Step 2 -- Find a Dealer
The next step is to find a dealer that will work with you to secure a guaranteed car loan. Most certified dealers of used cars are able to help in this regard, but it is a good idea to check first to be sure before you continue with negotiations.
Step 3 -- Acquire and Complete the Paperwork
Once you've secured a dealer and a lender, evaluate your own budget and repayment abilities. You should honestly assess your ability to repay a loan and use this information to help negotiate a deal that will work for you.
Having found a good loan situation, acquire the necessary paperwork from the dealer and lender and complete it. If you have any questions about the process of completing the paperwork to apply for a loan, consult with the dealer or lender for additional assistance. You may have to supply credit report information and other details which will require additional research on your part, so be prepared to the application process may take a little while to complete entirely.
Step 4 -- Await Approval and Select a Vehicle
The vehicle you'll be able to purchase will be dependent upon the loan you receive. Before you can complete your car selection, you'll need to wait until you receive word back on your loan approval status. In the meantime, search through the dealership for potential vehicles that will work for your car needs. After you receive the loan approval information from the lender, you can then continue to narrow your search to a vehicle that fits your loan price range and also your car needs.
After this, simply sign the paperwork to purchase your car and it is yours to take. Be sure to submit your loan repayments promptly to avoid heavy fines and penalties. If you have any additional questions about your loan, consult with the lending company.