RoadLoans.com Review — Auto Loans & Refinancing Comparison (2012)

You're making a direct auto loan application. This means that you know precisely how much money you have to spend, and the maximum repayment you'll be expected to commit to each month. This ensures that the entire process goes smoothly, and there's no embarrassing rejection.

The amount that you can borrow will be made clear at the outset by RoadLoans.com, so you're guaranteed to get the car or truck that you want without being rejected at the last minute. In order to keep the monthly repayments to a minimum, all customers are offered the longest possible repayment term. Subject to affordability, this can  be altered by the customer.

Even when you've agreed to financing from RoadLoans.com, you're under no obligation to buy a used car. You have complete flexibility throughout the process. This is important if you don't like any of the cars at your local dealership. If this is the case, you'll want to delay your purchase until a later date. Once 30 days have elapsed, you'll need to re-apply.

Although your household income has a considerable bearing on your credit limit, there's no minimum earnings requirement. Bad credit car loan lenders, such as auto loan central, require new customers to earn at least $1,800 per month. This is one of the ways that is used to ensure that the repayments are affordable to you, but it has its drawbacks. It's harder to get approval if you work part-time, perhaps because your partner is the main breadwinner.

Most lenders, including auto credit express, specify that you must not be an undischarged bankrupt or have had an auto repossessed during the last 12 months. The provision of collateral means that most other credit problems will be forgiven. You're expected to buy your car from an approved dealership so that it holds its value. The parameters are rigid, but they're in place to ensure that you're getting a top quality vehicle. The main negative is that some cars will fall outside of your price range.

The rate of interest you'll pay on a direct auto loan is based on the information held by credit reference agencies. Your FICO score has a huge bearing on your creditworthiness; it's determined by factors, such as earnings, personal debt and credit history. All lenders, including RoadLoans.com, use personalized pricing to determine the rate of APR because it provides a more accurate assessment of risk.

The lower your credit score, the more expensive it is to borrow money. The factor that has the greatest influence on the cost of bad credit car financing isn't necessarily the APR, it's the repayment term. Although the cost of borrowing is automatically spread over the maximum term, you're free to repay the money back at any time without penalty. If you can afford to do this, it'll save you money.