What Is Guaranteed Car Financing?
Posted on 27. Jan, 2009 by admin in Car Finance
Guaranteed car financing does not mean that the lender will guarantee the loan. They might guarantee that they will be able to offer you a loan but that is not the same thing as a guaranteed financing. Don’t let the ads fool you into thinking otherwise.
The true meaning of guaranteed financing is that the loan is guaranteed to be paid off in the event that the borrower cannot. There could be many reasons for getting this type of loan. The most common is bad credit. Lenders have a hard time making a loan to a person with a low credit score. If this is the case, they will sometimes be willing to make the loan anyway so long as the loan is guaranteed. You may be asking yourself how you can do that. The answer is simple, Get a co-signer to join in on the loan with you. The co-signer takes on the responsibility of paying any unpaid balance should the loan go into default. This person is in effect guaranteeing the lender that it will be paid as agreed.