If you need a car for work, there are options available to you. An online loan calculator is one way of figuring out your financial ability and the rate that may apply, while preapproval by your bank or credit union could give you more leverage when negotiating dealership prices, and prevent upselling attempts by salesmen.
Consider applying for a second chance auto loan as well. These lenders understand that people with poor credit need transportation and will help you establish it over time by making consistent payments – though their interest rates tend to be higher than traditional auto loans.
Starting the search for a new or used auto loan at your bank or credit union can be the ideal approach. These institutions often provide special financing at lower rates than other providers if you have strong credit scores and can make a down payment. In addition, preapproval from them allows you to avoid unexpected upsells or markups at dealers.
Many community-based programs also exist to assist those with bad or no credit who require cars, such as Ways to Work which provides low dollar-amount short term auto loans with low interest rates for working families who require vehicles or mechanical repairs – alleviating some of the stress caused by other, more traditional avenues with higher-interest rates.
These organizations go beyond simply providing transportation, however. In addition to offering training and employment services, such as job placement assistance for their clients, many also have partnerships that offer extra support in terms of childcare or food assistance for clients.
Unemployed applicants can still secure auto loans, though to get the best rates they may require high credit scores and alternative forms of income such as investments. A cosigner could help improve your approval chances even further.
Lenders will generally look at your job title and duration when making decisions regarding car loans, with some exceptions possible. In general, though, to qualify for either new or used car loans they require that at least six to 12 months have passed since being employed with your current company.
Many lenders provide refinance auto loans as an option to those at risk of becoming delinquent on existing auto loans that may become delinquent, default, or incur late fees and interest charges, or are at risk of repossession. A loan specialist can help determine if refinancing is the best solution and walk you through the refinancing process itself.