Auto loans can often feel overwhelming—especially if you don’t have an impressive credit history. In such cases, Advantage Auto Loans come in. This lending platform offers loans for individuals with average or bad credit. So, no matter if you’re a first-time buyer or someone looking to get auto loans, you have filed for bankruptcy. In this article, I will be discussing offers of Advantage Auto Loans.
Advantage Auto Loans
What are Advantage Auto Loans?
Advantage Auto Loans is a platform that is specifically designed to connect borrowers with lending partners in the United States. It specializes in assisting individuals with different types of credit backgrounds, including those who have bad credit and those who have had bankruptcies or repossessions. The main goal? Making car ownership accessible to everyone.
Who Can Apply for Advantage Auto Loans?
The beauty of Advantage Auto Loans is its inclusivity. Whether you’re self-employed, a first-time buyer, or have faced financial challenges, this platform is open to all. Just keep in mind that some conditions, like income requirements, do apply.
- US$22,119 with 9.79% APR
- Unbiased information
- Largest selection
- More ways to buy & sell
4.7
- rate as low as: 5.49% ±
- Fill out our short and secure two minute offer form
- We match you to our lenders - you get up to 4 offers
- Receive online certificate or check within 24 hours
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Key Features of Advantage Auto Loans
Credit History Considerations
Unlike traditional lenders, Advantage Auto Loans takes a broader view of your credit history. They’re willing to work with various profiles, which can be a game-changer for those who might otherwise struggle to secure financing.
Income Requirements
Preferred Pre-Tax Monthly Income
While they consider all credit histories, it’s worth noting that Advantage Auto Loans prefers applicants with a minimum monthly pre-tax income of $1,499. This threshold can influence your chances of approval, so it’s essential to keep it in mind.
Zero-Down Loan Options
For those who don’t have cash on hand for a down payment, Advantage Auto Loans offers zero-down options. Sounds great, right? But be cautious; not everyone qualifies, and you may end up paying more over the life of the loan than the vehicle’s worth.
No Prequalification Process
One of the most significant drawbacks is the lack of a prequalification option. Unlike some lenders, Advantage Auto Loans doesn’t allow you to gauge your potential loan terms before submitting a full application. This means you’ll undergo a hard credit inquiry without a clear understanding of what you might qualify for.
Related: Bad Credit Auto Loans Guaranteed Approval for Easy Financing
Benefits of Using Advantage Auto Loans
- For those who qualify, Advantage Auto Loans can provide competitive starting rates. This can make a significant difference in your monthly payments.
- Advantage Auto Loans prides itself on considering applicants from various credit backgrounds, making it a viable option for many.
- The platform collaborates with numerous lenders, increasing your chances of finding financing that fits your needs.
Drawbacks of Advantage Auto Loans
- While they do accept various credit histories, the preference for applicants with higher incomes could leave some potential borrowers behind.
- As mentioned earlier, the absence of a prequalification process can be frustrating. You won’t know your potential terms until you apply, which can affect your credit score.
- Due to the nature of zero-down loans and their focus on high-risk borrowers, there’s a chance you could end up paying more over the loan’s lifetime.
Related: Can I Get a Personal Loan If I Have a Car Loan?
How to Apply for an Auto Loan
Applying for an auto loan with Advantage Auto Loans is primarily done online. Here’s a quick step-by-step guide to streamline your experience:
Step-by-Step Application Guide
- Complete the Application Form:
Fill out your personal details, including your name, email, and phone number. - Provide Personal Information:
Include your address, property ownership status, employment information, and monthly income. - Include Financial Details:
You’ll need to provide your Social Security number, date of birth, and any bankruptcy history. - Select Your Vehicle:
Choose the make and model of the car you wish to finance.
After submitting your application, you can expect a confirmation email. If everything checks out, you may have your loan approved within a day!
Once you’ve applied, a representative will reach out to guide you through the next steps. The process is designed to be efficient, allowing you to get behind the wheel sooner rather than later.
Alternative Auto Loan Providers
While Advantage Auto Loans offers some unique benefits, it’s essential to explore your options. Here are two notable alternatives:
- LightStream
LightStream, a subsidiary of SunTrust Bank, offers competitive rates for those with strong credit scores. If you’re in good standing, you might find their terms more favorable compared to Advantage.
- OpenRoad Lending
OpenRoad Lending is another option, particularly for those looking to refinance. Their streamlined digital application process allows for quick approvals and potentially significant savings.
Related: How to Get an Auto Loan for a Car | Step-by-Step Guide
Eligible Vehicles and Financing Terms
Advantage Auto Loans finances future year, current year, and used vehicles up to five years old. So whether you’re eyeing a brand-new model or a reliable used car, they’ve got you covered.
You can secure financing for terms ranging from 24 to 72 months, giving you the flexibility to choose a plan that fits your budget.
Residual Value and Guaranteed Future Value
What is Residual Value?
Residual value refers to the projected worth of the vehicle at the end of the loan term. Advantage Auto Loans guarantees this value, offering some peace of mind if your car depreciates faster than expected.
Options at Loan Maturity
When your loan matures, you have a few choices:
- Sell the Vehicle: Pay off the loan balance and keep any difference.
- Trade-In: Use the vehicle as a trade-in, with the loan balance settled in the transaction.
- Keep the Vehicle: Refinance the remaining balance as a used vehicle loan.
Related: Secure Your Auto Loan Today – Fast Approval USA
Payments and Interest Rates
Your monthly payment is based on the difference between what you paid for the vehicle and its residual value. This can result in lower monthly payments compared to traditional loans.
The Annual Percentage Rate (APR) varies based on creditworthiness, with actual rates potentially differing from the advertised lowest rates. For instance, a 60-month term for a $25,000 loan at 6.49% could result in a significant balloon payment at maturity.
Advantage Auto Loans presents a unique option for individuals with challenging credit histories in the world of auto loans. While it offers several benefits, such as low starting rates and inclusivity, there are also notable drawbacks, like income preferences and the lack of a prequalification process. If you’re considering financing through Advantage, weigh the pros and cons carefully and explore alternative lenders to ensure you get the best deal possible.
Getting Started with Advantage Auto Loans
Buying a car can be exciting but sometimes hard, especially if you have had credit problems before. Advantage Auto Loans helps people who may struggle with getting a loan. They understand that everyone deserves a chance to have a car, no matter their credit history.
How to Apply for a Loan
To start, you can go online and fill out an application form. You will need to provide some basic information like your name, address, and how much money you earn each month. This part is important because it helps Advantage Auto Loans figure out if you can pay back the loan.
Once you fill out the form, someone from the company will review your information. They will contact you to let you know if you are approved and what your options are. This whole process is usually fast, so you won’t have to wait long to find out!
Finding Your Car
After you are approved for the loan, you can start looking for a car. You can choose to buy a new or a used car, as long as it is not older than five years. This means you have lots of options! When you find a car you like, the loan can help you pay for it.
Your loan payment each month will depend on a few things, like how much you borrowed and the car’s residual value. The residual value is simply how much the car is expected to be worth in the future. Knowing this can help you understand your monthly payments better.
What If You Can’t Pay?
If you ever find it hard to make a payment, it’s essential to talk to Advantage Auto Loans. They might help you figure out a way to make things work. Keeping an open line of communication is important to avoid problems later.
Returning the Car
At the end of the loan, if you decide you don’t want the car anymore, you have options. You can return the car without worrying about paying extra money, depending on how much it’s worth at that time. This means you won’t have any surprise costs when your loan is over.
- US$22,119 with 9.79% APR
- Unbiased information
- Largest selection
- More ways to buy & sell
4.7
- rate as low as: 5.49% ±
- Fill out our short and secure two minute offer form
- We match you to our lenders - you get up to 4 offers
- Receive online certificate or check within 24 hours
5
Frequently Asked Questions
Who can apply for an auto loan with Advantage Auto Loans?
Anyone can apply, regardless of credit history. This includes those with bad credit, first-time buyers, and self-employed individuals.
What types of vehicles can I finance?
You can finance new cars, current year models, and used vehicles that are up to five years old.
What is the minimum income requirement?
Advantage Auto Loans prefers applicants with a pre-tax monthly income of at least $1,499.
Do I need a down payment?
You may qualify for zero-down loans, but not everyone will. Always check the terms before applying.
Is there a prequalification process?
No, Advantage Auto Loans does not offer prequalification. You need to complete the full application to see what you qualify for.
How long does the application process take?
The application process takes less than 30 minutes, and you could hear back within a day.
What happens at loan maturity?
At the end of your loan, you can sell the car, trade it in, or return it without paying the residual value.
What is residual value?
Residual value is the estimated worth of your vehicle at the end of the loan term. It helps determine your monthly payments.
Are there any fees I should be aware of?
Always read the loan terms carefully, as fees can vary based on the lender and loan conditions.
Can I refinance my loan later?
Yes, you can refinance your loan balance into a new loan if you choose to keep the vehicle.
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