Used Car Loans vs. Pre Approved Auto Loans- preferred Option for Subprime Borrowers!

The car loan approval process is a complex one for each and every borrower as they have to be ready with all the relevant documents and credit report and also convince the lenders about their repayment capacity. It is not as easy as it sounds as the auto loan lenders are equally careful about who they lending and whether they will be able to recover the loan without any hassles. All these questions lead the lenders to implement strict rules and regulations as far as auto lending is concerned. This is especially true for traditional lenders like banks and credit unions.

However, with the emergence of online auto loan lenders the process of applying for an auto loan and also securing approval has become slightly flexible. Online lenders are not only flexible with their auto loan rates and terms but also provide a wide variety of options both for prime and subprime borrowers including pre approved auto loans and military car finance. If a subprime borrower is not comfortable applying for bad credit or no credit auto loans due to high interest rate and failure of rejection then he can apply for AutoDriver pre approved auto loans which are another variety of loan offered to both prime and subprime borrowers irrespective of their credit rating. This last condition makes it an attractive option for the subprime borrowers as they no longer need to worry about their credit score while applying for new or used car loans.

Pre approval car loans are provided based on the repayment capacity of the individual and so a good source of income and stable employment history are enough to convince the lenders of the recoverability of the loan. Pre approval car loans are offered to borrowers before the borrower even approaches the dealers and starts negotiating with them with regards to the price of the car. This type of auto loan is pre approved and thus the lenders approving the used auto loan offer a blank check with a specific credit limit to the borrowers. It is within this credit limit that the borrower needs to invest in the car as the credit limit is the amount that has been approved as loan for the borrower. Pre approval car loans are a unique way of accepting approved loan even before the person has had the opportunity to choose the car of his choice and negotiate with the dealers.