Personal Loan For a Car Purchase From LoanNow – Easier, Faster, and Better
Depending on where you live and other factors, a car is probably either highly desirable or a total necessity. If it’s the latter, and you don’t have a car or the car you have isn’t functional, you need to do something about it – sooner rather than later. If you don’t have funds on hand, you will need a personal loan for car repairs – or for purchasing a car, depending on whether you already have wheels. In both instances, LoanNow may be the ideal source to obtain the cash you need.
If you need or want to buy a car, your first decision is whether you will purchase used car or a new one. There are pros and cons to both options. If you purchase a used car, you may be able to save enough money to pay cash, rather than taking an auto loan or a personal loan for car financing to purchase the car.
On the other hand, purchasing a new car makes it more likely that your vehicle will have the latest technology and features – including improved fuel efficiency or safety measures. However, unless you have significant financial resources, you’ll need to take an auto loan or a personal loan for car purchase to be able to afford a new car.
If you must borrow to afford a car, lenders will either grant or deny your loan application based on your credit profile and FICO score much like with mortgages. If you have good or excellent credit you should be able to qualify for a loan with a low interest rate and favorable repayment terms. However, if your credit is marginal, you may be stuck with a high-interest loan with stiff monthly installment payments. In a case like this, you may be better off saving more money to purchase a used car with cash.
Bank and Nonbank Options for a Car Purchase Loan
You have several options for obtaining a personal loan for car purchase including bank loans and nonbank lenders. Banks offer the lowest rates, but demand good or excellent credit to qualify. Nonbank lenders may be somewhat more lenient, but still demand borrowers have at least average or fair credit.
Many nonbank lenders also serve as intermediaries for third parties rather than making their own loans. There are also less desirable options for obtaining a personal loan for car purchase, including so-called buy here, pay here dealerships, which prey on buyers with less than perfect credit.
Buy Here, Pay Here Dealers
Unless you cannot obtain a personal loan for car purchase elsewhere, you should avoid so-called buy here, pay here dealers. These dealers cater to car buyers with extremely poor credit, with cars on offer that are often subpar and overpriced. Their loans carry sky-high interest rates and lots of extra fees. Even worse, the fine print may require buyers to accept higher interest rates than they originally paid, or allow the dealer to repossess the car after a single missed payment.
Standard versus Subprime Car Loans
When pursuing a personal loan for a car purchase, you’re likely to encounter a term that may be unfamiliar to you: subprime loans. Standard car loans offer lower rates and better repayment terms, but are usually available only for borrowers with good or excellent credit. Borrowers with poor credit are often forced to accept so-called subprime loans which carry higher interest rates and may include administrative fees and other hidden fees that can add significantly to the total cost of a car.
Personal Loans for Car Repairs
If you already have a car but the transmission is shot or your tires are bald, you’ll probably need to take a personal loan for car repairs so you can get back on the road. Your credit profile and FICO score will largely determine whether you’re approved and what sort of loan terms you’ll get, just as with car purchases. If your credit is marginal, you may find it difficult to obtain the credit you need from a conventional lender. If that’s the case, don’t let desperation push you to make bad choices. You have options.
Try LoanNow, the Right Choice for a Personal Car Loan!
Whether you’re seeking a personal loan for car repairs or hoping to finance the purchase of a gently used car, LoanNow may be the answer you’re looking for. You’re more than your FICO score with LoanNow – we approve many borrowers banks turn down. We can provide the funds you need to get you out on the open road!