Fast Auto Loans and Fast Debt: Examining the Tradeoffs

Fast auto loans for some curious reason end up baffling consumers who seem to struggle to comprehend the fact that these are in fact simply auto loans which move at a greatly accelerated pace.  While traditional and mainstream loans invariably require a lengthy period of time in order for all of the necessary paperwork and red tape to be processed, this can be an unappealing state of affairs for both borrower and lender and so fast auto loans were specifically created and developed in order to expedite the entire process.

Not a Marketing Ploy

The word fast in fast auto loans is not a clever marketing ploy, nor is it grossly inflated hyperbole but rather a statement of truth. For those of you who are still feeling a little skeptical as to the comparative worth of these types of loans in comparisons to mainstream loans, please note that these loans can be completely processed within a matter of hours. Given that mainstream loans can take anywhere from several days to several weeks dependent on the lender, as can be plainly seen then, this offers a remarkable improvement.

Other Benefits

However, it should be noted that a speedy processing and completion time is not the only benefit associated with these types of loans and consumers who happen to suffer from poor credit history (and who doesn’t?) will find them of particular benefit and interest because the checks on their credit history are nowhere nearly as thorough or analytical. This means that even consumers who have bad credit ratings can have the car of their choice pretty much on the same day as the loan being cleared. Even if you have been declared bankrupt or have defaulted on repayments previously or have had CCJ’s, you can still legitimately apply for these types of loans.

Just like ordinary loans there are two forms of these types of loans, secured and unsecured. Secured will mean that the borrower secures assets of an appropriate value as collateral in the event that they default on the loan, while unsecured will mean that the borrower borrows the loan without having to secure such assets.

Best of all, there are a number of service providers on the internet who are willing to provide such loans meaning that the borrower can apply for the loan and finish the paperwork all within the comfort of their own home.

Potential Drawbacks

First off, these types of loans always carry a much higher rate of interest than mainstream loans, in order to ensure that the lender is able to obtain sufficient remuneration for their services as well as to protect their interests. This is only logical after all, they are lending money to high risk borrowers!

The short-term form of these types of loan will also be variable, entirely dependent upon market conditions and this is a factor that the consumer should be aware of as this can result in major changes to the amount owed.

 


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