Customers can obtain financing to fund their automobile purchases through either dealers and in-house financing or third parties such as credit unions and commercial banks. Both in-house financing and financing from outside financial institutions possesses their own advantages and disadvantages. Blank check auto loans are fairly unusual loans offered by third parties, meaning that they come with all the usual advantages and disadvantages of third party loans plus certain special qualities.
Blank check auto loans are called what they are simply because they are used in a manner similar to blank checks. Customers must apply for a blank check car loan in much the same manner as any other auto loan; but once approved, they are issued a blank check for any amount up to a limit set by the lender based on their financial circumstances. People who take out blank check auto loans can even refuse to use these checks if they change their mind before using them. The only real limitation is that such borrowers must use their auto loans to purchase automobiles.
Comparison to Other Auto Loans
Blank check auto loans are offered by third party financial institutions and share the same advantages and disadvantages. In general, dealers are much more willing to lend to their customers through in-house auto financing because doing so boosts their sales. However, this comes at the cost of generally higher interest rates and more demanding loan conditions. In contrast, auto loans from outside lenders tend to be harder to come by but also offer less expensive loans.
Where blank check auto loans truly shine in comparison to other lending options is their flexibility. Customers have not actually taken out the loans until they use the checks, meaning that they have access to open lines of credit but are not obligated to use them.
Blank check auto loans are especially useful because they eliminate the need to obtain dealer financing for the automobiles that borrowers are about to purchase. This means that these borrowers are less likely to be pressured into making hasty buying decisions by exuberant sales pitches. Better yet, these same borrowers can still choose in-house financing in case their dealer offers them a better deal.
Blank Check Auto Loans for Bad Credit
People with bad credit often wonder if these types of loans are available to them. That depends. It is typically easier to get approved for bad credit auto financing through a dealership than through a third-party that offers blank check auto financing.
That said, we allow people to apply for blank check auto loans online. This is a huge advantage for people with low credit scores, as our system is able to place the majority of our clients’ applications with lenders willing to finance them. To apply, just submit your secure application – online!