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It can be pretty hard to get around to doctor appointments, school,grocery stores or work or any of the other hundreds of locations youneed to get to auto parts mould in the course of your day without proper transportation.Buses can be unreliable and may not always fit your schedule or even beavailable in more rural areas. Taxis can be expensive and most townsarent set up for the easy walking commutes. And if youre relying onfriends for rides you might find out the hard way how unreliable yourfriends actually are.
So when it comes down to it there is no way around needing a car to getaround. If your credit is less than stellar it can be downrightimpossible to buy a car that is mechanically sound and reliable. Banksmake their loans to people who are least likely to need loans, notpeople who have no assets or savings and need a loan the most. And withthe recent downside to the economy it is even harder to get bank loansthan before even with good credit.The good news is many used automobile dealerships are set up to findlenders for customers with iffy or bad credit. With this type of autoloan the loan is secured with collateral, in this case the car is thecollateral.
The title to the car also known as the pink slip is in thelenders name and kept by the lender until the loan is paid off in full.Once the loan is paid off the title is transferred back to the car ownerwho can then legally sell the car if they so choose to do so. While thelender holds the title to the car, the borrower is able to drive andoperate the car and is responsible for all car maintenance and repairsand any other expenditure associated with the car.Most lenders will require the automobile have insurance for the amountof the loan so if something happens to the car the loan will be covered.The amount of a loan will also include DMV set up fees to cover puttingthe title in the lenders name as well as the eventual transfer backinto your name. The interest rate will vary depending on who your lenderis the amount of the loan and your personal credit risk that isassessed by your credit score.When your loan is paid off if you have made your payments in time notonly will you have a car but your credit will also see some upwardimprovement making your next car loan even easier.
So when it comes down to it there is no way around needing a car to getaround. If your credit is less than stellar it can be downrightimpossible to buy a car that is mechanically sound and reliable. Banksmake their loans to people who are least likely to need loans, notpeople who have no assets or savings and need a loan the most. And withthe recent downside to the economy it is even harder to get bank loansthan before even with good credit.The good news is many used automobile dealerships are set up to findlenders for customers with iffy or bad credit. With this type of autoloan the loan is secured with collateral, in this case the car is thecollateral.
The title to the car also known as the pink slip is in thelenders name and kept by the lender until the loan is paid off in full.Once the loan is paid off the title is transferred back to the car ownerwho can then legally sell the car if they so choose to do so. While thelender holds the title to the car, the borrower is able to drive andoperate the car and is responsible for all car maintenance and repairsand any other expenditure associated with the car.Most lenders will require the automobile have insurance for the amountof the loan so if something happens to the car the loan will be covered.The amount of a loan will also include DMV set up fees to cover puttingthe title in the lenders name as well as the eventual transfer backinto your name. The interest rate will vary depending on who your lenderis the amount of the loan and your personal credit risk that isassessed by your credit score.When your loan is paid off if you have made your payments in time notonly will you have a car but your credit will also see some upwardimprovement making your next car loan even easier.
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