No Interest Car Loans For Low Income Families
| In America, a car is a necessity, and it is the most preferred means of traveling. However, for some sections of the society such as low income families and welfare recipients, public transport is the only way of transportation primarily because these people cannot afford to buy a car due to their low income.
The major disadvantage of public transport is that they offer limited access to suburban job sites, child care centers and schools. As a result, low income families constantly face the risk of losing their employment since transportation problems often surface as a primary barrier to employment.
One way of avoiding this problem is to provide these families with car loans at zero interest rate. However, the reality behind zero interest car loans is that these loans are useful only when they are offered directly by the manufacturers. In case these loans are offered by a finance dealer, the actual cost of the vehicle is increased and sold to the customer so as to gain some excess money.
Not everybody, who applies for a zero percent car loan, gets approved. The most important criterion that dealers consider while approving a zero percent car loan is the credit history of the borrower. The foremost requirement is that borrowers should have an exceptional credit record. Another important glitch associated with zero percent auto loans is that the repayment period offered to borrowers is short. Usually, borrowers must repay a zero percent auto loan within 24 to 36 months. As a result, borrower needs to make higher monthly payments.
Low income families can get benefited with zero interest car loans only when the car manufacturer offers the loan with longer repayment term. And also, the credit checks should not be stringent.
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