In 2014, Americans bought 16.5 million cars. It means that 45,205 cars were sold in one day. If you look at the staggering number of car sales, you will realize that everyone around you is buying cars. If you want to buy a car but can’t because of your low income, you don’t need to enlist the help of a predatory lender to buy here, pay here. There is hope for you.
Auto Ownership Programs – A Silver Side for Low Income People
Non-profit organizations have started car ownership programs across the country to fulfill the dream of low-income people. If you are eligible for the program, nonprofits will provide you with a free car or offer a grant for the purchase of 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 daunting task for a beginner. To keep it simple and stress-free, follow the steps mentioned below:
>> Find a nonprofit organization that offers an auto ownership program in your area;
>> Check if you meet the program’s eligibility criteria;
>> Keep your financial documents and bank statements ready; Y
>> Write an essay requesting your need for a car.
What Should You Do If You Are Denied By A Car Ownership Program?
If a nonprofit organization denies your application for benefits under an auto ownership program, don’t worry. You can apply with online auto financing that suits your needs and offers low-income auto loans.
With the advent of the Internet, competition has increased in the car finance market. And increased competition has forced lenders and auto finance companies to open their doors to low-income auto buyers.
How to get a low-income car loan?
To get a low-income auto loan, follow the tips mentioned below:
1. Make the initial payment
When it comes to buying a car, low-income people take the strain on the down payment. But you don’t have to worry about that. You don’t need to apply for an outrageous personal loan to manage your down payment. Plus, you don’t need to go for a no-down payment auto loan. You can use your savings and raise money for a down payment.
Remember that the amount of the down payment will lower the cost of the price, show the lender your stable financial capacity and reduce interest rates.
2. Improve your credit score
Negative information stays on your credit report for several years. But, that does not mean that you have to suffer a bad credit score today. Here are some tips that can help you improve your credit score and increase your chances of getting your loan approved:
1. Check your credit report;
2. Dispute all the errors you find on the credit report;
3. Make payments and negotiate with creditors to remove the debt from your credit report; Y
4. Pay your bills on time to ensure a stable payment history.
3. Get a co-signature
Lenders avoid making loans to low-income people because they fear the safety of their money. But if you can find a co-signer, the lender will be sure to receive regular payments. It’s because a co-signer has the responsibility to make the payments if you don’t.
Remember to ask someone with good credit to become your co-signer because lenders won’t accept a co-signer with bad credit and higher debt.
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 getting approved for the loan.
