The normal routine for getting car finance is to first see how much you can afford to pay every month, accordingly select a car and then approach an auto loan provider. Provided that your credit rating is good, you are almost assured of getting an auto loan. However, if you have a poor credit or if you are blacklisted, you can have problems in getting your loan approved. Frankly, blacklisted people have a lot fewer options for getting a personal vehicle loan.
Auto Finance Options for Blacklisted People
Approaching a bank is practically out of question for blacklisted people because the application is most likely to be rejected. Banks and most lending institutions are wary of lending to people who have a bad credit history because they do not want to repossess vehicles and start selling them for recovering their investment. Some institutions that may provide an auto loan to anyone regardless of their credit ranking will ask for much higher interest rates.
Tips to Securing Auto Finance
- If you are blacklisted the following tips may help you in getting a car within 24 hours:
- Opt for a leased sale agreement. You get a car on lease and the agreement states that you can exercise the option to buy it at the end of the agreed term. You do not own the car but you can get the tax advantage on lease payments. If you change your mind midway you can return the car to the owner company any time you wish.
- Consider a car on the basis of how much down payment you can afford to pay.
- Analyze your current financial position and see how much you can pay per month.
- If a new car seems unaffordable select a used car. Make sure that you inspect it or get a professional to do the inspection.