There are few options, including a car loan credit waiver, for those who have a poor credit rating wishing to purchase a car. Many banks and conventional lenders will not lend any money since they feel they will not be paid back; especially in the current economy. They have to tighten up on their lending practices. However, some car dealers who finance their own cars will help out those with a poor credit rating. They are more likely to extend a car loan credit waiver.
Most lenders require a down payment before offering a loan. A car loan credit waiver eliminates or minimizes this requirement. The downside of receiving this credit waiver is the interest rates are much higher compared to the conventional loan for a purchaser with a good credit rating. In addition, the lender may require automatic payments from your checking account, debit or credit card. This will also end up costing more in the long run. Sometimes a co-signer will be necessary as well.
The usual credit check will also be required, with you explaining any derogatory credit deficiencies. A car lease credit report will also be required in the event you had previously leased rather than purchased a car. Leases may or may not appear on credit reports.
Recently, the Government allowed consumers to purchase newer cars with a car loan tax credit of $4,500. This allowed many consumers to trade-in their older gas guzzler for a newer, less emission car.
Always determine if the advantages outweigh the disadvantages when purchasing a car using a car loan waiver.
