With online availability of secured auto loans, you can now finance your car even if you have bad credit. Secured car finance are designed for those who are short of sufficient fund to purchase a car. In auto secured financing, borrower has to pledge a car he wishes to purchase as collateral against a amount. If borrower fails to repay the loan amount within a specified period of time, the financial institution has the right to take possession of the collateral and sell it to recover its loss. As presence of collateral assures lenders of the fact that they will be able to recover their money in the event of borrower's default, applicant can negotiate with lenders to reduce monthly payments with the lowest possible interest rates. Secured auto finance thus can be more affordable compared to the unsecured auto financing that might offer relatively unfavorable interest rates.

Even in secured auto, there are certain assessments conducted by lenders to establish how much reliable a borrower is. If you have this question in your mind, will I get approved for a car loan?, you should immediately consult a trustworthy professional advisor who can make you well-versed with the eligibility criteria for getting early approval with competitive rates. Even though, approval qualifications may vary from lender to lender, below mentioned considerations can help you to ascertain lender's expectations.

If you offer a used car as collateral, lenders might require that a car should be in a good condition. Auto finance lenders usually prefer cars that are not older than a specified number of years. As lenders will be at less risk due to collateral, you can also negotiate with them on the less amount of down payment.

A borrower should assess his credit score as it will demonstrate his financial steadiness to the auto financing companies. A good credit score will help you acquire competitive interest rates on car financing. Conversely, a bad credit record can help you get auto approval but getting low interest rates may be difficult. Hence, prior to applying for a car loan, a borrower should start looking for different ways to improve his credit score. If he has accumulated many debts, he should pay them off before starting his search for the best auto financing deal. He can also make regular payments on credit cards for at least six months to improve his credit score and derive affordable monthly payments. Moreover, a proof of a steady source of employment as well as income, income tax documents, credit report, valid driving license, documents related to collateral (car), etc. are part of lender's assessment.

Borrower can also think of how to get pre approved for a car. Here, he will first apply for a car loan after scrutinizing his monthly budget; this will be followed by an auto finance approval after borrower is found qualified for the same. Post car financing approval, borrower can make a car purchase keeping in mind the amount and payment terms he has already managed to acquire.

Through an auto secured loan, you will be able to borrow a significant portion of the value of collateral (car) while retaining possession of car and using it for transportation. Here, lenders' risk is greatly reduced and hence you can negotiate with them for the affordable payment terms. You should do a market research to know the types of auto finance being offered by lenders and understand the terms and conditions set forth to get an approval. Many professional advisors who are expert into auto financing secured loans can guide you well in the approval process.