How Does a Secured Car Loan Work?

What is a Secured Auto Loan and How Does it Work?

A secured auto loan uses the vehicle as collateral. For security measures, the lender can repossess the car if payments stop. A secured auto loan is one available option. Be aware that not all car loans are the same.

Personal information is needed when applying for a secured auto loan. Here is a checklist of what you will be required to show or approve:

• Name 
• Social Security Number
• Financial Status
• Credit Check

Use the above checklist to understand applying for a secured auto loan. A credit check is necessary. Combined with your income, your debt-to-income ratio is determined. The ratio is what determines if you meet the loan requirements. Once approved, you will know the fixed rates of your loan.

When you receive a secured car loan approval, you can select your vehicle. You will need to make regular payments on the loan until paid in full. When the loan payment is complete, you own the car. If payments of the secured auto loan stop, the lender can repossess the vehicle. Whether a secured auto loan is right for you or you want to learn more about in-house vehicle financing, our finance team is here for you every step of the way!

Get Your Secured Auto Loan at Kareem Auto Sales Inc!

Our dedicated finance team wants to help drivers from Elk Grove to Roseville and beyond find the right lease or loan. If you have more questions about how secured auto loans work or about low mileage used cars, please contact us today or apply for approval. Whether you have good credit, bad credit, or no credit, we are here to help. Our auto loans and preowned inventory always keep you in mind. We want to help you get behind the wheel of your dream car. So the next time you need a secured auto loan, think Kareem Auto Sales Inc!