Revealing The Truth Behind Guaranteed Car Loans

Revealing The Truth Behind Guaranteed Car Loans

Posted on June 26, 2023

If you have been researching car loans and the wider financial market, you may have come across the term ‘guaranteed car loans’. What are they? Are they real? How can someone guarantee a loan when they don’t even know you?

Our car loan experts explain.

Are Guaranteed Car Loans Real?

Some dealerships advertised guaranteed car loans that are neither guaranteed nor normal car loans. Some will be more like ‘buy here pay here’ loans where you buy a used car from the dealer and pay them directly.

Others will include a credit check but will usually accept borrowers from all walks of life. This makes it possible to access a car loan whatever your circumstances but is by no means a guarantee.

Nobody can guarantee a standard car loan until your credit has been checked. Regardless of the type of lending you go for, it will involve a credit check of some type, which means there is no guarantee until the lender knows who they are dealing with.

How Can Someone Guarantee Car Loan Approval?

They can’t. For all the reasons above, you cannot be guaranteed a car loan until you have been assessed as a financial risk and checked out for fraud, bankruptcy, and all the other things that influence modern finance.

Usually, guaranteed car loans are to get you in the door where the dealer can work their magic and talk you into a car loan. While it may not be technically illegal, it’s shady.

Better Ways to Finance a Car Loan

We recommend going through normal channels to get your next car loan. It’s fast, painless and won’t take long at all. Work with experts like us and you’ll be provided with a range of competitive loans at the lowest possible rates.

We won’t guarantee you’ll get a loan but we will guarantee we’ll try our best to get you one.

Our team has access to lenders who will work with people from all walks of life in all kinds of financial situations. It doesn’t matter what your credit score is, we know lenders willing to work with you.

Whether it’s a bad credit car loan, a standard car loan, or something else, we can find the credit you need at a price you can afford.

There are no guarantees though.

You’ll need some kind of credit history, a decent down payment, and proof of ID, address, and income. If you can afford the loan, we can get you one but you’ll have to prove it.

Lenders are now under an obligation to check that every borrower can comfortably afford a car loan. For that they’ll need proof of income and outgoings and bank statements to prove it.

There are few guarantees in life and especially in your financial life. What we can guarantee is that we will try our hardest to find you an affordable car loan suitable for your situation!

If you're ready for a car loan in Southern Ontario, we'd love to help with that! simply fill in the form below to get started.