Auto Loan Providers - Auto Loan Options
If you are declined by a direct online lender, or do not want to borrow the minimum $7,500 required by direct lenders, there are alternative financing auto loan options still available to you for auto financing. Check them out below.
 Equity Line of Credit/Home Equity Loan
Personal Loan
Preferred Licensed Auto Dealers
ALTERNATIVE FINANCING - ONLINE DIRECT LENDERS - AUTO DEALERS
 A: Home Owners -
If you own a home a great alternative financing plan is to acquire a loan against the equity in your house.
If you are up to date on your mortgage payments you can use a home equity loan or equity line of credit as auto loan options to purchase a vehicle. Even if your other credit is somewhat blemished, as long as you have made timely payments on your mortgage, it will have a positive effect on the decision process to get cash out on an equity loan. This alternative gives you the option to purchase the car from a franchised/independent dealer or a private party. You can usually borrow at a competitive rate using the equity all the way up to 100% of value.
Equity Loan Definition: Cash in one lump sum taken from the equity in your home repayable during the life of your mortgage.
Equity Line of Credit Definition: Form of revolving credit in which your home serves as collateral. Equity lines are generally used for major purchases such as education, home improvements, medical bills, or an auto loan. Lines of credit plans are usually set for a fixed time during which you can borrow money, such as 10 years.
Advantages of a home equity loan plan:
All or part of your interest payment could be tax deductible.
Gene rally allows you a much lower interest rate than a special finance auto loan.
Our recommended choices for Home Equity Loans are:
Please take the time to review and choose a company that has a home equity loan best suited to your personal needs.
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B: Personal Loans is good alternative financing for an auto loan and is
available to consumers in the market to purchase a pre-owned vehicle for a retail value of less than $7,500.
All of our Personal Loan opportunities are offered by online direct lenders.
Personal loans allow you to borrow money without home equity, and without using the auto as security. Personal loans are based on your current and past credit history. Many people declined for an auto loan through more standard means can be approved for a smaller amount on a personal level.
When shopping for a personal loan, look for the loan that best meets your particular needs. Look carefully at the credit agreement and examine the terms and conditions of
various online direct lenders offering
persoanl loans, including the annual percentage rate (APR) and any costs involved with setting up this type of loan.
Our recommended choices for Personal Loans are:
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C: Preferred Licensed Auto Dealers using indirect lenders have less stringent underwriting criteria than that of a Direct Lender. Auto Loan Providers offers our customers who are unable to qualify for a direct auto loan the alternative financing option to use one of our Qualified Preferred Special Finance Auto Dealers. Our auto dealers offer numerous auto loan options for people with sub-prime credit that have special circumstances preventing them from receiving an online direct lender approval. Not all auto dealers are proficient in the special finance arena so we offer this service to direct you to an auto dealer that has expertise and extended auto loan lender resources available to help you with your subprime, special finance needs.
When working with an auto dealer, versus a online direct lender, the dealer finance department groups your credit into A, B, C, D type credit, and does not rely as heavily on your FICO score. Know what category you will fall into.
A Credit Rating: Impeccable credit, good debt to income ratio.
A-Minus Credit Rating: Minimal blemishes are acceptable within the last two years. Medical bills, including hospitalization are usually disregarded by the lender. However, your regular payment habits are looked at more closely. No more than two 30 day late payments should show up on your revolving and installment credit within the last 24 months.
B Credit : Some Blemishes are acceptable within the last 18 months. Up to four 30 day late pays are acceptable on revolving and installment debt.
C Credit : Blemishes are accepted within the last 12 months with not more than six 30 days late payments on revolving or installment credit. Bankruptcy with a discharged is also acceptable. More than likely, money down and/or positive equity in your trade-in will be required by the dealer.
D Credit : This credit category will usually mean you will be required to locate a franchised dealer who works with very special finance needs, one that has in-house lending, wherein the auto dealer finances the vehicle through their dealership, not through outside lenders. This option usually required you to stay under $10,000 in lending power, and be prepared to have a down payment of at least 20% of the amount you wish to borrow.
**The above are general auto dealer industry guidelines. There are no hard-and-fast rules to placing a borrower into one category versus another. Border line customers could fall higher or lower in the lender's eye, depending on the underwriter reviewing the application.
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