In 2014, Americans purchased 16.5 million cars. It means that 45,205 cars were sold in a day. If you look at the astounding number of car sales, you will realize that everyone around you is buying cars. If you want to buy a car but are unable to do so because of your low income, there is no need to take help from a predatory buy-here-pay-here lender. There is hope for you.
Car Ownership Programs – A Silver Lining for People with Low Income
Non-profit organizations have started car ownership programs in the country for fulfilling the car dream of people with low income. If you become eligible for the program, the non-profit organizations will provide a free car or offer a grant for buying a car.
How to buy a Car with a Car Ownership Program?
Buying a car with the help of a car ownership program can be a strenuous task for a novice. In order to make it simple and stress-free, follow the steps mentioned below:
>> Find a non-profit organization that provides car ownership program in your area;
>> Check whether you fulfill the eligibility criteria of the program;
>> Keep your financial documents and bank statements ready; and
>> Write an essay soliciting your need for a car.
What should you do if you get rejected for a Car Ownership Program?
If a non-profit organization rejects your request for obtaining benefits under a car ownership program, do not worry. You can apply with an online auto financing who cater to your needs and offers low income auto loan.
With the advent of the internet, competition has increased in the auto financing market. And, increased competition has compelled lenders and auto financing companies to open their doors to car buyers with low income.
How to obtain for Low Income Auto Loan?
In order to obtain low income auto loan, follow the tips mentioned below:
1. Make Down Payment
When it comes to buying a car, people with low income take tension of down payment. But, you need not worry about it. There is no need of applying for an outrageous personal loan for managing down payment. Also, there is no need to opt for no down payment auto loan. You can make use of your savings and put together money for down payment.
Remember that the down payment amount will lower the cost of the price, manifest the lender of your stable financial capacity and reduce interest rates.
2. Improve your Credit Score
Negative information stays on your credit report for several years. But, it does not mean that you have to suffer from bad credit score today. Here are a few tips that can help you improve your credit score and increase your loan approval chances:
1. Check your credit report;
2. Dispute all the errors that you find in the credit report;
3. Make payments and negotiate with creditors to remove the debt from your credit report; and
4. Pay your bills on time to ensure a stable payment history.
3. Get a Co-Signer
Lenders shy away from providing loans to people with low income because they fear the safety of their money. But, if you can manage to find a co-signer, the lender will be sure of getting regular payments. It is because a co-signer has the responsibility of making payments if you fail to do so.
Remember to ask someone with good credit history to become your co-signer because lenders do not accept a co-signer with bad credit history and higher debts.
Obtaining a low income auto loan can be difficult for a car buyer. But it is important not to lose hope. If you can convince the lender of regular payments, there will be no problem in getting loan approval.