Things you need to know before taking a car financing loan in Houston
Written By Fred Patrick
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Whether you want, to have car financing for business needs or for personal use, some rules and regulations needs to be followed. In this article, we will discuss some things that are essential to know before buying a car on finance. Besides this, the lender for sanctioning the loan requires some documents. Here are some car-financing details for you:
- The car should not be more than seven years old
You can finance a new as well as an old car. However, there is a policy that the car should not be seven years old. Yes, this much old cars cannot be financed. Thus, it is essential to see how old the car is before making up your mind.
- You should show two years of cash inflows
If you are buying a car for business purpose or in another case if you are giving your business papers as collateral for the car finance, then you should show that your firm is working since last two years. It should be verified with two years of cash inflows. It is due to the reason that the car financing institutes require authentic collateral.
- Bank statement and credit score
Some dealers also want you to pay a specific percentage as the down payment. In case, if you are giving this down payment, you will be required to verify it through your recent bank statement. Besides this, some dealers also check the credit score. There is some standard credit score set by the dealer and borrowers, who have a low credit score, are not given loan. On the other hand, some dealers offer loan even to those who have a bad credit history.
- Other papers and guarantee
Not only is this, but there are some other requirements as well. These requirements include the income tax returns, utility bills, and original papers of the collateral.
Buying a loan for car is very simple. The rules and regulations vary from dealer to dealer. You should search a dealer who is professional, reliable and have sound policies. Try to contact with dealers who offer 2nd chance financing auto loans. Usually, the process of in house financing auto dealers is simple and less time taking. Do an online search for reliable Houston dealerships and get your car easily through financing. Do not forget to compare the interest rate and check the car carefully before signing the agreement.