Auto Financing from Elite Auto Loans: FAQ's

1. Are there any fees associated with Elite Auto Loans’ service?
No, this service is completely free.

2. What is the benefit of using Elite Auto Loans rather than going directly to a dealership?
Because we have clients with various credit ratings ranging from excellent to poor, the tone and relationship that we build with our clients’ is always courteous and professional. At the traditional dealership, people with less than perfect credit will often be treated differently because it is more difficult to qualify them for a loan and the dealership assumes more risk when entering into business relationships such as this. In addition, after finding out that you have less than perfect credit, the selection and quality of vehicles that you are shown diminishes, and is often far from the type of vehicle you may desire. By using Elite Auto Loans services, you are able to walk onto a dealership lot with pre-approval—getting you the respect and selection of vehicles you deserve.

3. What are the basic criteria needed to apply for auto financing?
You must be at least 18 years old with good residence and employment history (i.e., typically showing at least 2 years at the same location). In addition, your monthly income from one source of employment and "other income" (court ordered child support, documented rental income, etc.) should be a minimum of $2,000 for a direct auto loan. However, indirect financing through an auto dealer allows considerably less income.

4. How will my loan application be processed?
Elite Auto Loans processes all loan applications through our participating dealer network where you will be matched up with a dealership in or near your area.

5. Is your financing available for both new and used vehicles?
Yes, our participating dealer networks can help with the vehicle of your choice.

6. How long does the process take?
Our online loan application form only takes about 3 minutes to complete. Once a member of our participating dealer network or financial institution has received your application, and you have been approved for financing, you will typically be contacted within 24-48 hours.

7. What type of auto loan am I applying for?
We make every effort to locate and approve you for a same as “cash” auto loan through one of our direct lenders at a participating financial institution. Same as cash auto loans work similarly to a “cash” voucher or draft to use like a check to pay for your vehicle. However, when approval like this cannot be granted, we attempt to find you a quality sub-prime auto loan through one of our participating dealer networks.

8. What is “Direct” auto financing?
Direct auto financing uses a same as cash voucher or draft approval from a financial institution that can be used at the dealership of your choice.

9. What is “Indirect” auto financing?
Indirect auto financing is through a particular dealership rather than a financial institution.

10. What is the difference between Prime Lending and Special Finance or Sub-prime auto loans?
Prime lending is extended to people who have an excellent credit rating. On the other hand, special finance or sub-prime auto loans are given to people with bruised credit.

11. Can I get an auto loan even if I have bad credit?
Yes! Our program is designed to help people with bruised credit get approved for vehicle financing. In this case, you will typically receive a special finance or sub-prime auto loan. Unfortunately, we can not guarantee auto loan financing for those with severely damaged credit, but we will make every effort to meet your auto financing needs.

12. Does purchasing a pre-owned vehicle really help me re-establish my credit?
Yes, many lending institutions look at vehicle loans closer than any other type of loan, with the exception of home loans to verify your credit standing. Pre-owned vehicles are an excellent option because the automobile has already depreciated allowing for much more affordable payments. With consistent, on-time payments toward your vehicle loan, you can work on re-establishing your credit.

Many people with bad credit also believe that buy-here, pay-here dealerships are their only option. However, this does not help build your credit because the buy-here, pay-here dealership does not report the “loan” to the credit reporting agencies.

At one time, people also believed that unsecured credit cards were a way to accomplish the same objective of rebuilding your credit. However, this is not a sound financial decision because you are borrowing your own money, with a higher interest rate if you don’t pay off your balance in full every month.

13. How does applying to multiple lenders for auto financing affect my Credit Bureau score?
Currently, the credit scoring agencies indicate that all credit inquiries within a 14-day period that are associated with one type of purchase are consolidated into one inquiry for scoring purposes.

14. How is my auto loan interest rate determined?
Interest rates are determined based on your credit (i.e. FICO or Beacon) score, and the lenders and auto dealers use internal rating criteria to determine APR to be set for your auto loan.