Blank check auto loans
What Actually Is blank check auto Loan?
auto mobile purchases are very common. People purchase different types of auto mobiles like SUV, cars, etc. Minivans and motorcycles are also bought in good numbers. It is not that buyer has always the needed money. In fact, auto mobile purchases are affected through loans in many cases. There are many loan options available. One among them is blank check auto loan. In this type of loan, potential buyer of an auto mobile carries a blank check from the lender. Amount written on the face of check is pre-approved. This amount is written after the deal if finalized. Since borrower carries the check blank and writes amount after the deal, it is called as blank check auto loan. By presenting this check to the seller of auto mobile, buyer frees himself from all types of tactics and ways used by the salespersons at the car dealerships or other sources. There are many benefits attached with blank check auto loans. Let us try to understand these.
Benefits Attached With blank check auto loans
It has been seen that when a person wishes to buy an auto mobile through an auto loan, he has to purchase car etc from the car dealerships. Third or private party deals may not be available. But through blank check auto loan, third party purchases are possible. In other words, it is not necessary that a person buys only new auto mobiles. Used or pre-owned auto mobiles can also be purchased. Third party deals are sometimes very favorable. Practice of allowing third party purchase through blank check auto loan differs from one lender to another. Second important benefit of these loans is regarding people with imperfect or bad credit. While purchasing car or any other auto mobile, people having bad credit have to agree to the terms and conditions of the car dealership or any other seller. This is because due to bad credit, not many loan options are available for them. In some cases, loan options may be absent altogether. With blank check auto loan, there is no need of saying yes to all the terms and conditions of the car dealership. This also helps him in avoiding higher interest rates applicable.
While visiting any car dealership, a person feels confident that with a pre-approved check , he can negotiate the interest rates, repayment period etc. Thus, blank check auto loans result in satisfactory deals.
Time is considered as an important factor in present times. These loans have helped people in saving time and in buying auto mobiles in a hassle free manner. Before they start shopping for auto mobile, finance is secured. Instant approvals are also available at many online centers. Sometimes, these are also guaranteed. Low interest rates are offered to people having bad credit also. Maximum amount approved is decided on the basis of credit requirements and repayment capacity.
Other Important Aspects
There may be many questions in the mind of reader regarding the terms and conditions attached with blank check auto loans. For example, how this loan is carried out, what is the interest rate and so on. A person can lock the loan rate in this type of loan. Term of repayment is also locked. Interest rate is kept same until the borrower refinance. However, a person becomes liable for buying the auto mobile as is mentioned on the face of the check. Lender may not allow borrower to use the check for a longer period. auto mobile has to be purchased within the given time period, which is generally short. If borrower is not able to buy auto mobile in this period, the check offered by the lender to him becomes null. This time period varies from 30-45 days.
Applying for blank check auto loans is easy. With presence of many online centers, it has become even easier. A person can apply for the maximum amount of loan and can get approved for the same. Approval for the auto mobile loan for the said amount makes him eligible to get the check and he can visit the car dealership etc. As said, borrowers gets approved the check for the maximum amount. When he visits the dealership, he can select an auto mobile up to that price range. No overdrafts are possible. Negotiations can be made with the car dealerships for higher priced auto mobiles so that they fall into the required price range. Once negotiations are over, price can be written on the face of check. The check is endorsed in the favor of seller.
It has been observed that blank check auto loans have worked well for the lender as well as for the borrower. Borrower is able to make a satisfactorily deal on the basis of pre-approved amount. He can get the check in favor or individual seller or dealership. Even in some cases, lenders offer check in the favor of auction houses also. Thus, source for purchasing auto mobile is not restricted. Approval may also be obtained from the lender for price higher than the loan in certain cases. But this does not compel the borrower to buy auto mobile for the highest price. The ease with which blank check auto loans work is really great. On other hand, lenders take care of the requirement of borrower. But they are very strict in assuring that monthly income of the borrower supports the monthly installments. Interest rate applicable on these loans is generally fixed. It does not fluctuate. Normally, it gets changed only when borrower refinances the blank check auto loan.
Loan amount under blank check auto loans may also include registration fee, license fee, taxes applicable and charges towards extended warranty. Any other cost related to buying of auto mobile may also be included. Approval for the loan can be obtained from 3 to 5 days. Borrower is intimated about the same through mail etc. If borrower thinks that within the given time frame, he would not be able to find the right type of auto mobile, he can get the validity period extended.
Some centers offering blank check auto loans are ezauto finance.net, rapidcarloans.net, and Capital One.
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