Guaranteed Car Finance
A guaranteed car finance loan is a new concept in car financing that allows individuals with poor credit or bad credit to get a new car loan or a second hand car loan. It helps out the individual with bad credit who needs a car and it is great for the car dealers and lenders in that it is a way for them to work with people with bad credit and thereby increase their business.
A guaranteed car finance plan is a free service provided by lenders to car buyers with poor or bad credit. The guaranteed car finance lender allows the borrower to request a loan amount for the purchase of a car and when approved the borrower can shop for a car at any dealer as if he/she where a cash buyer. This allows the borrower to get the best purchase price possible.
Guaranteed Car Finance-How Guaranteed Car Finance Works
The borrower of a guaranteed car finance loan will select the car of their choice from the car dealership of their choice. They will then submit the completed application and the car details to the guaranteed car finance company. There will be a required down payment of up to 20 % of the purchase price of the car. The completed application must be accompanied with the following documents:
- Passport and/or drivers license.
- Name
- Current address
- Employment
- Bank Statements (3 to 4 months)
- Utility Bill
- Current Mortgage or Rent Payments (or process to make current)
Guaranteed Car Finance-Guaranteed Car Finance Borrower
The guaranteed car finance programs are designed for people with bad credit, bankruptcy histories, credit and debt defaults, court judgements, no credit history and/or start up businesses which would be considered to risky for conventional lenders.
Guaranteed Car Finance-What is Guaranteed Car Finance
A guaranteed car finance plan is basically a rental agreement or a contract for hire. The guaranteed car finance lender actually becomes the owner of the car and rents it to the borrower for a set monthly rental fee. For the term of the guaranteed car finance agreement the borrower makes the monthly payments and has the full use of the car. When the term of the agreement ends the borrower gets a free and cleat title to the car.
Because the guaranteed car finance lender is actually the owner of the car for the term of the agreement it is relatively easy for them to take possession of the car in the event of a default by the borrower. This reduces their risk and should monthly payments be missed they can merely take the possession of the car and place it with a new borrower.
