Do not accept the first offer that you get
Bad Credit Auto Refinance - Bad Credit Auto Refinance Still Yields Tons of Savings written by: petraa2 If you have bad credit, it's understandable to think that not a single company is willing to refinance your auto loans. This may be true for some people, but for a lot of people, getting a bad credit auto refinance deal is totally possible. As business processes become more and more "webanized," it's getting increasingly easier for customers of all credit histories to find lenders that are willing and able to refinance loans at competitive terms, even sub prime terms. In addition, a number of companies that specialize in bad credit auto refinancing are springing up left and right. So, don't fret. Filling out a few quick online applications can end up saving you tons of money. Find in house financing car dealers near me
Why are companies willing to refinance a customer with bad credit? Because bad credit auto refinance can be extremely profitable, even when there is a drastic cut in the interest rates. Let's take a look at a typical scenario. About one year ago, Mary needed a car badly. During that time in her life, her credit report had more than a few blemishes (okay, it was really bad). So, she walks into Friendly Joe's 'We'll Finance Everyone' Car Lot. And just like the advertisements said, she was able to drive away with a car that very day, no problem! The salespeople were extremely friendly and helped her get financing for her new wheels, at 21% interest for six years.
This is a ridiculous amount of interest to be paying, but Mary is happy because she has a car to help her get to work and school, and around to do important errands. Plus, the terms of the financing got her a manageable monthly payment of just under $250.00 ($10,000 loan). Friendly Joe helped her when "nobody" would. Mary may or may have not known that her $10,000 car would end up costing her around $18,000 by the time she pays it off. But one thing is for sure - Friendly Joe is making an $8,000 profit off Mary.
Do not accept the first offer that you get. You should take your time and make sure that you do not have better options out there. Just because you have bad credit does not mean that you are not a financially responsible individual. There are lenders out there who understand that you may have experienced financial trouble in the past or made a few mistakes regarding your finances. You can have a second chance when it comes to your credit score.
When you take out a loan and make your monthly payments, most of the money that you pay each month goes directly toward the amount of interest. Once that amount is paid off in full your monthly payments will begin counting towards the lump sum of the loan amount. Once the loan is paid in full the bank or lender then surrenders the title to the new official owner.
Just because a bank or lender has the title to a car does not mean that you cannot drive it. It simply means that you are indebted to the bank or lender for the purchase of your new car or truck. If you get a loan from a bank or a lender to buy a car or truck you will more than likely be required to have full coverage insurance on the vehicle in case you are in an accident. This ensures the bank will get paid back in full for their loan.