Frequently Asked Auto Loan Questions & Answers - Auto Loans for Special Finance, Subprime Auto Loan Financing

7. Will I be required to have a down payment for the purchase of my auto?
Down payments, if required, usually are 10% or $1,000 whichever is lower. Your present credit standing will determine the need for a down payment. It is always wise to be prepared to have a down payment, and then be pleasantly surprised when one is not required when finalizing your auto financing.

8. What basic criteria are needed to apply for auto financing?
You must be at least 18 years old. Your monthly income from one source of employment and "other income" (court ordered child support, documented rental income, etc.) should be a minimum of $2,000 for a direct auto loan, but can be considerably less when using indirect financing through an auto dealer. You need good residence and employment history showing of at least 2 years . at the same location.

9. Can my auto loan be used to purchase a commercially rated vehicle or a vehicle considered "classic"?
No. Loans are provided for a private passenger motor vehicle, light truck, or van for personal, family or household use. The autos being financed must be no older than 6 years and have less than 80,000 miles.

10. If I purchase from an auto dealer, how will I know I am getting a fair deal?
Fortunately, all credit type customers have the power to negotiate own their auto loan terms with an auto dealer. If you are approved for a direct auto loan, but still want to use dealer auto financing to see if you can do better, you have given yourself a great tool to work with by pre-qualifying on the direct side first. If you should be declined, please allow us to refer you to one of our network auto dealers that are trusted in the industry and committed to servicing our customers with your best interest in mind.

11. What is considered a fair deal when purchasing a new or used auto?
The standard industry calculation for determining a fair price on new auto finance is: Invoice price + upgrade options + destination charges - manufacturer rebates/incentives X 5% dealer profit. When financing a preowned auto, shop the vehicle without making an immediate commitment to the auto dealer. Research the retail/trade value (call your local bank or use an online source for valuing a vehicle), and then go to the dealer and offer somewhere between the current retail and trade value.

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