What Are Car Loans?

By Author: Brenda Williams
Total Articles: 30
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What Are Car Loans? They are advances that differ little from other types of advances you can get from a lender. The real difference is that the vehicle advance is for a specific purpose where other advances can be for anything including mortgages. These types of advances are going to be based on the same principles as other advances. This means that you have good credit history, a permanent job with the correct amount of income, a good debt to income ratio, and of course that you are who you say you are. Vehicle advances are based on the amount needed to purchase the vehicle you are looking at.

The car loan is going to be based on the amount you need. Say a vehicle is $12,000 and you will have a $2000 trade in or down payment. You will need a vehicle advance for the 10,000 plus any taxes and other fees. The loan officer will look at the amount you need, determine an interest rate and then determine the monthly payments you will have. The vehicle can be the newest model on the line, or it can be a used car depending on your needs and income. Most of us want to have a newer vehicle as it will be more dependable ...
... and require less maintenance work.

The dealership can find you a car loan or you can supply your own vehicle advance, depending on what type of advance you may need. There are regular vehicle advances; bad credit vehicle advances, or a straight secured advance that can be used for a vehicle advance. You will have some choice in the type of vehicle advances you look for. It will depend solely on your need for the advance and of course your credit history. Those without credit history or bad credit may have higher interest rates than others.