Secured car loans are quite secure for the client. It means lesser payments and better car. You always get a better deal than the traditional car or auto loans. As the client, you will be in an advantageous position. You will secure a car deal usually in your own terms. The best part of a secured car loan is that they are readily available to anyone owning a property or a home.

The moment your chosen lender agrees to accept your terms, you can immediately own your dream car. You will also have a flexibility of making the first installment 30 days later!

Though the processing of secured car loans appear easy, yet they are very tricky too. So, ensure that you are not befooled by apparently rosy promises of the loan providers. Always be choosy and professional. After all, you'd be securing the car loan by only mortgaging your asset, property or home.

Secured car loans are sanctioned against mortgaged property or house. As you'd be pledging your valuable asset like the property or the home, the lender grants you much elbow space.

There are many benefits. You'd enjoy repayment options that are varied, loan terms that are flexible and interest rates that are rather low.

Yes, there is a special advantage. You can very well buy a secured car loan along with car insurance. This clause shields you against unforeseen mishaps like loss of job or illness.

Technically, the duration of a secured car loan is short. The repayment time ranges from 36 months (three years) to 72 months (six years).
A recently conducted research of Automobile Finance shows that only 31% of the newly sanctioned loans extend beyond five years. It has further found that as many as 82% of such car loans extend beyond four years but are less than five years.

Of course, you can. But technically you'd be unnecessarily overburdening your budget. The monthly budget will get topsy-turvy. This is simply because a car depreciates fast in its value. This is especially true if you wish to sell off the car at a later date. Moreover, it is not at all advisable to sell off one's car before its loan is repaid.

First, the secured car loans are always a better option than car dealership. The latter option entails that you pay more compared to the former.

The first step to go about securing a secured car loan is to cull your FICO or credit score. This scorecard is an important piece of paper documenting your credit history. It will show your collection info and other public records. It will further include inquiries from various firms or individuals with whom you have had business transactions at the time you sought the secured car loan; your loans, repayment history and mortgages.

It's rather easy to get the FICO score. Such scorecards are generally procured from various credit bureaus. However, you can also get fast FICO scores online after submitting your information and the ones required by the respective websites like TrueCredit, Consumerinfo or Equifax.

You will be able to get a secured car loan even if you have a bad FICO score. The only liability for you would be that you'd be paying a high interest rate. There are many lenders who deal exclusively with borrowers having bad FICO score.

If you have a bad FICO score, always proceed carefully prior to roping in any such loan provider. Read between the lines, ask questions and settle for the agreement only if the terms are to your liking. Don't fall for glib talk.

• Know that many additional costs are generally kept hidden.
• Secured car loans should never be accepted impulsively.
• Pose posers mainly on the ongoing bank fees, monthly management fees and the redemption penalties.
• You must also know from the horse's mouth whether the loan is daily reducible?
• Above all, specifically enquire from the respective lender if you'd have to bear extra payments at any point of time.