It does not make any financial sense in buying vehicles by paying the entire amount from your pockets. Therefore, it is recommended that you opt for car financing. It is always easier to pay easy monthly installments, rather than shelling out money to purchase your car outright.
It is easier to procure auto loans if your credit history is good, and if you have a monthly inflow of cash. Auto finance is provided to the vehicle buyers at the time of purchase, which needs to be paid back along with the interest amount, gradually within the agreed timeframe. Availing car title loans in Atlanta or any other city in the US is not all that complicated, but it important to make the repayments on time to avoid your vehicle from getting confiscated.
The Plus Points of Having Car Loans:
- Reduces the stress of paying a huge amount at one go. You can use your car and keep making minimum payments each month towards the borrowed funds.
- It helps to build your credit score if you are paying the installment on time.
- You could choose to buy a vehicle of your choice without compromising on your other needs.
- It is your own car and can be driven anywhere you like unlike the ones that are available on lease or rent.
- Another added advantage is that any damage done to the vehicle will be paid by the insurance company. Most of the companies ensure that the purchaser buys insurance along with the vehicle bought. The premium amount may be a little high, but later as the outstanding balance reduces, it will come down.
- You have the choice of refinancing your loan to other types such as home equity credit, if your payment history is well maintained. This will ensure that you enjoy low interest rates.
- Unless you make payments on the due date, you’ll not be charged any fee, thus saving you from high installments every month.
In order to get your loan approved quickly, there is a set of legal documents which you need to keep ready.
- Proof of income: Your lender would be more interested in knowing the source of your income. It gives them a sense of security that the borrowed funds will be paid in the agreed time. You have to provide the latest pay slips or the deposit slips if the money is transferred directly to your bank account. This will help the lenders know your incomings and the tax paid. For self employed individuals, they can produce two years of tax return papers.
- Proof of residence: It is a must, as the finance company will want your address for further negotiations. Your home electric bill or identity proof having your current residing address will be sufficient.
- Credit papers: Your good credit history is sure to sail you smoothly through the entire loan application procedure. You’ll need to provide complete details including date of birth and social security number to help them check your credit score and if any debt owned. Your lenders would also want the copies of any mortgage being paid currently.
The delays in loan approvals happen because of inadequate or incomplete paperwork that you produce. Therefore, you will need to make sure that you keep all the paperwork ready for a smooth approval process. Some of the lenders will process the payment directly into your bank account, while others pay you through checks.