| The loan market is going through a turn around ever | | | | picture when a loan is about to be sanctioned is the |
| since the recession hit the market. They say that the | | | | credit report of the individual. Usually with a bad credit |
| market got effected and went into recession due to | | | | report it is difficult to get a car loan. Specially a new |
| sub prime lending. By sub prime lending we mean that | | | | car loan with a score below 720 is acceptable. |
| loans got distributed to people who were not worthy | | | | 2. Any creditor wouldlike to see what is the repaying |
| of getting credit. The credit policies have been | | | | capacity of the individual before he goes ahead and |
| re-looked and remade by the authorities so that credit | | | | sanctions a loan for the person. |
| goes into the right hands and gets repaid at the right | | | | 3. The customer should weigh his pros and cons |
| time. | | | | before going with a used car. There will be a cost |
| Car loan is one of the most sought out loan in the | | | | involved for maintenance and other cost which the |
| secured loan market. Most of the people are facing a | | | | customer needs to consider before he goes ahead |
| difficult time getting a loan at a low APR due to the | | | | and make a decision for buying a car. |
| clamping on the loan industry. Specially if you have a | | | | There are many banks which will refuse to give a loan |
| credit score less than 700 points then getting a loan is | | | | to a person with a bad credit report. However there |
| all the more difficult. So there are many who settle | | | | are many who take a loan from the dealership which |
| down to buy a used car from good used car dealers | | | | go ahead and finance people even if the report of |
| rather than wait indefinitely for the credit rates to | | | | credit does not look too good. They are better as they |
| improve so that one go ahead and buy a car. | | | | are relatively easy to obtain and have better APR as |
| Even in the case of a used car there are a lot of | | | | compared to the banks. The customer needs to go |
| factors which would determine the interest rate and | | | | online and compare different rates and find out which |
| monthly payments. | | | | are the banks or dealers ready to give him a loan and |
| | | | at what rates? |
| 1. Credit Report- The first point which comes into | | | | |