What is an Auto Loan?
An Auto loan is a loan secured against the vehicle you intend to purchase. This means the vehicle serves as collateral for the loan. If you default on your repayments, the lender can seize the vehicle. The loan is paid off in fixed installments throughout the loan term. Similar to a mortgage, the lender retains ownership over the asset until you make the final payment.
Auto loans are usually simple interest loans. This implies that the interest on the loan is determined based only on the principal balance of the loan. Auto financing can be used to purchase cars and other vehicles, like RVs, motorcycles, and ATVs.
Advantages of Auto Loans
Why should you apply for an Auto Loan to purchase a vehicle?
- No separate Collateral: Your car itself will serve as collateral for the loan. So, you don’t need to provide separate collateral to secure the loan.
- Builds Credit: The great thing about car loan payments is that they actually help your credit history, as long as you stay on top of payment deadlines.
- Future Savings: When you finance a new vehicle, you get the peace of mind that you won’t have to pay for those repairs for quite some time, like with used vehicles.
- Improved Budgeting: With a car loan, you get to decide how much money you pay each month. So, you won’t be overspending elsewhere in your life.
Auto Financing - the Right way
When you’re searching for an auto loan, it pays to shop around and check with various lenders. GConnectPro helps you compare auto loan rates and loan terms from multiple lenders. With us, you can compare different types of auto loans, including new and used car loans, and auto refinancing options. Irrespective of whether you’re buying from a dealer or a private seller, you can find loan options at GConnectPro. Also, ensure that when you go to purchase a vehicle, you are getting it for the best price by purchasing it at the best time of the year.
Who qualifies for an Auto Loan?
Personal Credit Score
Documents Required to apply for an Auto Loan
- Proof of identity
- Proof of income
- Credit and banking history
- Proof of residence
- Vehicle information
- Current vehicle registration (for trade-in)
- Proof of insurance
- Method of down payment
Auto Loan Calculator
You can use the calculator below to see how much your auto loan will cost you!
Types of Auto Loans
- Secured Auto Loans: Here, the lender will put a lien on the asset that is being bought by the borrower. However, other types of secured loans may put a lien on another asset, such as a car or a house owned by the borrower. A lien on an asset allows the lender to repossess that asset if payments are not made as agreed.
- Unsecured Auto Loans: Unsecured auto loans do not allow lenders to repossess any assets if payments are missed. Instead, lenders have to go after the delinquent borrower through other legal means. This is why most unsecured loans have high costs and interest rates.
Auto Loan Application Process
with Global Connect Pro Financial
- Application form: Firstly, you need to fill out our online application form giving us basic details of your loan requirements.
- Advisor Call: Our Financial Adviser will call you to discuss your qualifications, loan options, and help you prepare for your loan application.
- Loan Application: Once all the documents are ready and qualifications are met, we’ll move on to the actual loan application with the lender.
- Loan Approval: Our Financial Advisers and Agents will keep in touch with the lender to ensure that your loan is approved at the earliest.
We can help you secure the funding that your business needs!