What Does Guaranteed Car Financing Mean?

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Guaranteed auto financing simply means that a credit check is not required. Dealerships that offer in-house financing will use your income rather than your credit score to determine what you qualify for. This option is especially beneficial for buyers with a bad credit rating. Learn more about the different ways to buy a car from the Auffenberg Dealer Group finance department.

Bad Credit Loans vs. Guaranteed Financing

There are different options available when it comes to bad credit loans. At some dealerships, buyers make payments to the dealership directly instead of to the lender, which has little effect on their credit, but often these have a higher APR and higher monthly payments. To qualify for guaranteed financing, drivers typically need:

  • Income of around $1,500 to $2,000 a month before taxes
  • Proof of income
  • A down payment for 10% of the vehicle’s price
  • A personal list of references

While we work with drivers of all credit backgrounds, we think you’ll be surprised at how easy it is to qualify for a traditional car loan — many drivers have better credit than they think!

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Does In-House Financing Help Build Credit?

Yes, in-house financing can help you to build your credit rating. Since the majority of in-house financing dealerships report payments to the major credit bureaus, you’ll improve your credit score, provided you keep up to date on your payments. Guaranteed car financing allows you to get the car you need and build up your credit at the same time.

Finance Your Vehicle at Auffenberg Dealer Group

If you’re searching for guaranteed car financing, stop by your local Auffenberg Dealer Group dealership and talk with our finance specialists. We think you’ll be surprised at all of the options open to you when you apply for financing and get pre-approved.

Do you have questions about how to buy a new car? We can help you get started. Calculate your monthly payments, and find out whether buying or leasing works best with your budget. Find out what to bring when buying a car, and feel free to contact us if you have any questions. Considering an extended warranty? Find out if it’s worth the cost!

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