Auto loan companies are financial institutions that allow people to take out auto loans. An auto loan is an agreement between you and an auto loan company where the auto loan company gives you the money you need to pay for a car, and you give the auto loan company that money, as well as a percentage of the original loan for interest, over an extended period of time in increments. The interest rate that the auto loan company quotes to a person depends mainly on that person’s credit score, and it is difficult for people with bad credit scores to find a good deal on an auto loan because the quoted interest rate is so high. Sub-prime auto loans were designed for people with a credit score of six hundred and fifty or less.
If you are looking for a sub-prime auto loan, it is not recommended that you hire an auto loan broker, because they will likely put you into contact with lenders that benefit themselves, rather than you. The world of sub-prime auto loans is not as neat and friendly as that of the auto loans available for people with high credit scores. There are many lenders, called “predatory lenders,” that intentionally mislead sub-prime borrowers as to their interest rates, so be very careful if you plan to take out this type of loan. Research the company that you choose to finance your sub-prime auto loan thoroughly to make sure that it is legitimate, and carefully read through all the documents that come with the agreement. Make sure that there is nothing written in the agreement that you do not know about and accept.