Overhaulin'

How exactly do car loans work?

I am looking to get a new car and I don't have any credit at all which I know is the same as having bad credit, but I read on some other people's questions on here that it is actually not that difficult getting financed right now. So how exactly does that work? I can afford the payments each month, but I don't have anything as a down payment so is that what I would use the loan for? Please explain thanks, but ok how does leasing a car work? lol

Public Comments

1. lease a car. that is easier.
2. first u have to take loan from bank then you have to pay him in instalments with intrest
3. With no credit you would have to either pay cash, borrow from family, or get a co-signer, assuming you are at least 18 years old. Here's more about it: http://www.firstcarguide.com/finance/ .
4. In this modern age, almost everyone wants to own a car. But everybody can not afford it. But they don't have to worry about it at all, because of car loans. There are several car loan finance companies which offer affordable car loan options in India these days. But before taking decision about car loans you need to verify which would be the best car loans. If you are searching the information about the best car loans, then the easiest way is to go Online to a specialist motoring or car loan website and find the information.
5. First, no credit is not the same as having bad credit. Bad credit shows you don't pay your bills. It is easier for a first time car buyer to purchase a brand new vehicle. A good thing if you don't have much for a down payment is look for a vehicle with a good cash rebate, the dealership will put that as your down payment. There are some great rebates out there, especially with GM. Toyota has great cars, but they don't have a lot of rebates so if you really need that for a down payment it's something to consider. Leasing is almost like renting, you're paying to use the car for a certain number of months and at the end you can walk away from the vehicle (as long as you don't have excessive wear and tear or milage). But the bad thing is you don't own it and will not have any equity so you'll have to start from scratch for your next vehicle. They have a residual value, a set price that the people who decide car values say the car will be worth when you are done leasing and the rest is what you pay so there is a set price on what you could buy the car for at the end of your lease. Leasing is not for people who put a lot of miles on their vehicles or who don't take good care of their cars, but it's great for people like me who love a brand new car every 3 years as long as you know what you're getting into. No matter what anyone says, it is a tough time to get a car loan. My husband works at a dealership and the Finance guy has been telling us how people with 700 credit scores aren't getting loans when that used to be a guarantee. And if you're going to buy a brand new vehicle, tell them you want to pay invoice and don't let them make you pay any more than invoice! The dealer still has a ton of hold back money in there and make plenty of the cars. They really want to sell cars right now so stand your ground and be ready to walk. There are plenty of dealerships that will be willing to sell a car at invoice. And go the last week of the month. That's when dealers are trying to make their end of the month sales goals and are more likely to jump through hoops to get you into a car. I hope this helps and good luck!