Now that you know that New Car Now can help you get car financing, what do you need to qualify for a car loan? Firstly, let us start with the things that you know about car loans. How much do you think you know?

After you pass through our hands, the approval process for the car loan will be quite fast. However, you will have to handle some paperwork and therefore the loan jargon used in the process can sound like mumbo jumbo to a newbie.

Understanding the basic terms used in car loans processing can help you know what you are getting into. Here, let us walk you through the basic things that you should understand before applying for car financing:

Important terms used in car loans

Principal Amount

First, you need to know the principal amount of the car you want. This refers to the total cost of the car plus any charges added by the dealer.

Interest Rate

The interest rate may differ based on several issues, such as credit rating and may even differ from one dealer to another. In most cases, a lower credit rating attracts a higher interest and stricter terms while a high credit rating attracts a friendly loan with lower interest rates.

Repayment Amount

The repayment amount consists of the principal amount plus the interest charged. The amount is divided over the repayment period to be paid on a monthly basis. That is why people pay car loans every month, same as they pay their mortgage.

Repayment Period

The car loan is usually paid over a specific duration of time. This is known as the repayment period. The repayment period varies depending on the terms agreed with the lender, and it usually ranges between three to six years. However, the term could be shorter or longer depending on the parties involved.

What you should be ready to show before you get the loan

Employment History

The car buyer should be working and should have held their job for at least three months. New Car Now uses the employment history to determine that the customer could continue working for longer, thus providing a means of repaying the loan.

Bank Account ­

The lender wants to get their payment every end month, without failure. Thus, one of the requirements is that our customers should have bank accounts and that they should also sign a form to authorize that the lender gets their money automatically from the bank.

Driver’s License

­ If you are the person who is going to drive the car for which you are seeking financing, well, the banks tend to find you more reliable. In addition, one other reason for asking to see your driver’s license is so that they can get your address. This establishes some sort of permanency.

What you may or may not need

Down Payment

­ Lenders vary depending on whether they ask for a down payment or not. This is the first amount paid to the lender without interest, then the remaining amount is paid with interest and is spread over the repayment period. The deposit/down payment however is not compulsory.

At New Car Now, you are free to select a plan that involves paying a down payment or one that does not. New Car Now offers you the best option for a bad credit car loan. We will get you very competitive interest rates, which surpass other companies. We understand your needs and we will try hard to provide you with the best option.