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Getting auto loans is a daunting and an uphill task amidst the global recession. However, with the intervention of government and federal banks to ease the liquidity and money circulation, the loans can be obtained at a cheaper interest rate. The loans obtained can be used to purchase a brand new car or any other type of used vehicles. There are so many factors that come into the picture while obtaining a new loan. Here are some of the Frequently Asked Questions to help you understand the process and terms much better.
INTEREST RATES:
Get to know about the interest rates charged for the loan amount. The credit history will have a definite impact on the determination of the interest rates for an auto loan. It is good to maintain a higher credit score to obtain loans at cheaper rates. A credit score above 680 is preferred as a good score. One must repay his loan amounts properly and should clear off his debts at the right time to improve the credit scores.
PRE-PAYMENT PENALTY:
It is important to find out if there exists any kind of penalty fees before obtaining a car loan. Make sure that you are not penalized for an early payoff. Make sure you get the lowest possible penalty and fees rates. Most lenders will fix the time period as 3 to 5 years for the early payoff.
FEES:
There are umpteen kinds of fees which are applicable for an auto loan and they will vary from each lender. The application fees will be higher which are involved in the loan process. You have to make special request to the lenders to waive off certain fees. This is an exact term which brings huge amount of profits to the lenders. So be watchful in its terms.
TERM:
Do some effective research in exactly coming up with the fixing up of terms. It is important to have an installment that will fit within your budget level. It usually varies from 3 to 6 years. Loans for new cars will be quite longer than the used vehicles.
PROCESSING TIME:
Consumers are entitled to know the time taken to finish up with the application procedures when applied for the auto loan. Usually, online applications will be verified in 24 hours. There are certain auto loan lenders who can even grant the loan in few minutes of time.
IS ALL THE INFORMATION SAFE WITH THE COMPANY?:
Make sure that the company’s websites use the latest 128 bit SSL encryption certificates for all its transactions. This will protect the unauthorized entry and hacking of your personal data.
IS THE LOAN AMOUNT BASED ON THE TYPE OF CAR?:
Most lenders determine the loan amount for the auto loans based upon the credit history of the consumer. If it is good, then the customer can have the requested amount of money to buy his dream machine. However, there are lenders to offer unsecured loan to the extreme users.
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