• Check Your Credit Score: This is an extremely important criterion to get approval for an auto loan. Make sure you have a good credit score, as it affects the interest rate that you will be charged for your loan.
• Budget: Get a clear estimate of how much you can afford for the initial down payment as well as the monthly repayments. Calculate your monthly income from all sources and the indispensable expenses to know the money you can spare for the car loan.
• Check The Interest Rates: Before deciding on your loan policy, compare the rates of interest quoted. Even a slight change in the interest rate could make a huge difference in your monthly payments. You must also decide between fixed and floating interest rates.
• Select Loan Repayment Period Wisely: When you are shopping for a car loan, make sure you take the loan repayment period into consideration. Although long tenured loans may seem attractive in the first place, you may end up paying a lot more as part of the interest rate. Hence, it is always advisable to choose a short-term loan with 3 to 5 year repayment duration.
• Skip a payment: You should confirm with the agent if you would be offered the option of ‘ skipping a payment’. You may be offered to skip one payment a year but it is helpful in times of a financial crunch. 
• Secured Or Unsecured Loan: You also have the option to choose between secured or unsecured auto loans. In the former one, you have to put up collateral equivalent to the loan amount which, in most cases, is the car itself. The interest rates and monthly payments are quite low in these types of loans.
  

Are you wondering how to buy the car of your dream? Getting yourself a secured car loan is your best bet. It is a loan that you can avail by surrendering collateral which you can regain once you have paid back the loan with interest. Every year thousands of people apply for a secured car loan. It is uncomplicated and has many advantages for the borrower. In most of the cases, the car itself is the security. The lender considers the car as the security against the loan. He acquires the car in case the loan is not paid. But sometimes, the lender may ask security of a higher value. In such cases any financial asset such as house, another vehicle or jewelry can be used as collateral. There are three fundamental requirements to get a secured car loan. You should have regular monthly income and you should be able to prove it using bank slip or any other document. Lenders prefer to lend loan to people who are employed somewhere than to self-employed. Also, if you live in a rented apartment you should have proof that to have lived there for at least 12 months.

One of the biggest advantages of getting a secured loan is that the interest is low and the tenure to return the loan can be longer. Since lenders have the security of the collateral the terms are flexible. The borrower can enjoy easy payment of installments, which allows the borrower to plan his or her savings. The lenders are interested in getting their monthly installments on time. As long as you are able to prove that you have a regular income you can get a secured loan regardless of which income group you fall in. Borrowers of secured loan who are asked to surrender their house as collateral often can benefit from tax-deductions. In such a case, the monthly installment is deducted from the tax that one would otherwise pay. Another advantage about secured loan is that it allows a cordial relationship between the lender and the borrower because of the security of collateral. The lenders are not skeptical about getting their installments and they sometimes can even go easy on delay in payment of installment.
 
In these tough economic times choosing secured car loan is the most hassle-free option.