Wednesday, June 10, 2009

A Payday Loan for an Auto Purchase

Did you know that you can negotiate a better price on a car or truck simply by having a down payment in hand? That’s right; most auto dealerships will “reward” buyers who offer some cash at closing.
They do this for several reasons, but the primary one is that cash at closing goes directly into their bank account and not into the hands of a financing company. Additionally, many auto financing companies will extend discounts or rebates to their buyers who are offering to pay the closing fees on the loan as well.
So, how does this work if you don’t happen to have the amount required to obtain the best terms? You can take a payday loan and use the funds for the auto loan closing fees, and then simply work the repayment of this small advance into your weekly budget.
For example, a person shopping around for a new car finds that if they have $1,800 at closing they will get a buyer’s incentive rebate, the best interest rate on their loan and will end up paying significantly less for the vehicle. This person happens to have only a few hundred dollars in their savings, so turns to a payday loan company for the rest of the amount.
The payday loan company is not going to look at their credit report or ask for tons of documentation in order to release the funds requested. Instead, they are going to simply ask the borrower a few questions about their job, income and living status, and then make their decision.
The important thing to remember when choosing to use a payday loan to purchase a vehicle is that the funds will need to be repaid as quickly as possible, AND should be worked into the budget before borrowing in order to ensure that the repayment terms are possible.
For instance, if a borrower takes a $1,000 payday loan or cash advance, they’ll have to sit down ahead of time to see how many weeks it is going to take them to repay that amount. They should then consider increasing this repayment period by two to four weeks to make sure they are going to be able to meet the weekly payment amount without overstraining their budget.
Once a good budget is worked out, the borrower can simply request the loan they need and then visit their auto dealer with this “cash in hand” to make the arrangements for the best vehicle loan possible.

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