Car Loan with bad credit any credit no money down financing

Did you know that when automobiles first came out, people were actually required to pay for them? In cash? No loan? And in 1920 a $600 car took just as much out of a pay check as today’s $20,000 car. So why were car loans developed? Some banker quickly realized that as cars became more necessary to every day life, he could make a lot of money from that need to own one. Remember that interest payments are the life blood of any financial institution. Actually, our grandfathers even got bank loans to buy a new carriage so this has been around a long time.

Always remember that a bank does not lend you money to help you out; they lend you money in order to make more money for themselves. Therefore, please do not go in to apply for a loan, any type of loan, feeling that the bank is doing you a huge favor and beg and plead for this loan. The bank is fully aware that they are putting you in trouble by letting you owe more money then you can afford in order to make themselves a lot more money. You may feel they are doing you a favor but they are not. And if they do turn you down because they feel you cannot support this additional expense, believe me, you cannot afford it. That is, a bank will only turn you down if they really know you will not be able to pay them back. If they are that sure, you can be that sure that you cannot afford it.

Having pointed that out, we can safely assume that in today’s society most people have to get a loan in order to buy a new car. Most of us can usually save enough to buy a used car for cash but not a new car. Quiz time – Which do you think is better for your finances, to take out a loan for $20,000 for a new car or to save for a few months and buy a used car for $3,000? Remember that a typical loan for $3,000 can be paid off in a year as compared with a five year loan for the new car. Do you really want to add that much more debt to your budget for that length of time? Also remember that you are not just paying off $20,000 or $3,000. You must also think about the interest you will be paying in dollars and cents.