Buying cars was never so easy. You want a car. You get an estimate from the car dealer. You then apply for a car loan which gets approved in no time and you have the car keys in your hands. But this is not the case when you go for secured loan. This speed of approval is possible only when in no credit check auto loans.But why would anyone risk his money by financing your vehicle? Simple; it looks like an unsecured loan but it is in fact not. Once the vehicle is financed, you get the keys so that you can use the vehicle. But the lender stays the original owner of the vehicle until you pay off all the dues.
In case you default, the financial company will sell off the vehicle to recover the costs. Of course, they may still suffer some loss as the value of the car depreciates as time passes. But still, there is some unwarranted guarantee in no credit check auto loans.
Based on your income, you can decide how long you will take to repay the loan. Smaller periods mean you repay in bigger installments yet save on the overall cost of the loan by way of saving on interest. If you cannot afford bigger installments, you can opt for longer periods. Longer periods allow you to pay lesser amounts as installments. But then, you end up paying more by way of interest.
Smaller periods can be of two to three years. Longer repayment periods can be five years or more. For people with less income, longer periods are recommended. You can always repay the entire loan anytime you get bigger amount to do so. But then, no credit check auto loans require you to pay some prepayment charges to compensate for the interest loss which the lender would suffer. But still, the loan is worth it as it allows you to own your personal vehicle.
Frank Dervin completed his Masters in Finance from
