Guaranteed auto loan is easily available from a car dealer provided you meet some basic conditions. The essential papers required for a smooth transfer of money is prepared by the dealer's office. Besides, a low interest rate is charged on such a loan.

There are people who dream of owning a car out of their weakness for a specific model or just that there is an emergency situation where buying a car seem to be the best possible solution to avert a crisis. Whatever might be the reason behind the eagerness to purchase a four-wheeler, the basic question that needs to be answered – whether you have the required sum of money to make payment for your chosen car model or not?

Sometimes, people don't have the money ready in hand to book a car. They approach a bank or a credit union for that matter to borrow the amount. However, all banks sweetly refuse a person with a bad credit labeling the person as a 'high risk client'. It goes beyond saying that in such a situation, a potential car owner feels depressed facing the hard reality. A guaranteed auto loan can help an individual easily purchase a car at any moment he feels like. Just that he needs to abide by some basic conditions to get such a loan.

• Age proof – In order to qualify for a guaranteed auto loan, a person needs to be above 18 years of age. No institution or car dealers will sanction a loan to a person who is below that age.
• Identity – You have to provide the permanent address of the place where you stay currently for verification purpose.
• American Citizen – You must have a proof of being an American citizen; otherwise you will not be offered a car loan.
• Bank Account – You might have a bad credit but you should have a bank account. The assumption is you are going to repay the lending amount from that bank account.

While the banks refuse to lend money to an economically unstable individual, the auto dealers operating in different cities of USA are providing instant Auto Credit Approval once you approach them with your request. Most of them have a website where an online loan application form is uploaded. A potential car buyer needs to fill up the form and submit the same to get a loan quickly.

The dealers usually prepare the essential papers themselves that are needed for a legitimate lending procedure. The papers are made within a week and the borrower needs to visit their office on a day to sign the documents.

Guaranteed auto loans are provided by the dealers against a low rate of interest to make it easier for people to pay the amount. Usually, a low down payment is asked for a time of car purchasing.

It is an easy and hassle-free process to apply for auto credit loans from a car dealer. Banks refuse to lend money to people with a bad credit. In contrast, dealers lend money to anyone with a bad or no credit score. The rate of interest and down payment asked for is also low. 


If you are unable to get a car loan from a bank just because you have a bad credit score, there is nothing to worry at all. It is not the end of the road since many car dealers are operating in your city offering auto credit loans to people having a poor or no credit. Some of my peers have applied for auto loans from dealers functioning in their area. As they say they feel blessed to come across the car dealers since they are getting loans quickly and as per their convenience.

The car dealers have made the lending process far easier than the rigid procedure the traditional lending institutions are still following (Example: banks, credit unions, etc.). The dealerships are promising guaranteed auto loan to people without performing any kind of inspection to know their current pay package, employment history, or bank balance. Thus, people with a bad credit rating need not feel ashamed thinking he will have to undergo a question-answer session with the officials after a loan application.

Nowadays, an increasing trend is seen amongst people with a good credit score to apply for a car loan. Now, of course they have a different reason for this – to save income tax, rich people are seen investing  more on houses and vehicles.

A quick online search to learn about the potentiality of the car dealers has helped me better understand the advantages or benefits of approaching a dealer over a bank.

1. Anyone can apply for a loan – This feature has made the dealers the number one choice for a majority of people planning to purchase a four-wheeler soon.

2. Exempt from preparing the documents – The borrower will not have to prepare the essential papers himself. The dealer's office will do the same for him. He just needs to be present at the office for signing the papers to complete the auto credit loans taking process. Besides, an auto dealer asks for the most important papers only for quick completion of the lending formalities.

3. Low down payment – At the time of buying a car, the potential customer needs to pay a low down payment compared to an increased amount as demanded by a bank.

4. Low rate of interest – A borrower has to count a low rate of interest on the amount he or she has taken as a car loan. Besides, special concessions are given by further lowering the interest rate to people on request.

5. Extension of repayment – The repayment period can be extended on special request for some more months by the dealer.

People can ask for a car loan to buy a new or a used car; however the lending amount might vary based on the manufacturing date of a specific car model and on it's re-sale value.