A Secured Car Loan and How it Works

How Does a Secured Car Loan Work?

Before figuring out how these loans work, it’s important to know what this type of loan is. So, what is a secured auto loan? This type of loan uses collateral, typically the vehicle itself, as security. This means your vehicle can be repossessed by the loaner if the payments stop. In order to start the process for this loan, you’ll need to get in touch with our finance team. You might also be wondering: is a car loan a secured car loan? Not necessarily. There are different kinds of car loans to choose from. Contact the Volume Chevrolet finance department to learn more.

What’s the Process?

Once the paperwork is started, you’ll need to get a few things together with personal information such as your social security number, information on your current financial situation, and a valid ID. A credit check is also necessary in order to get approved. Your credit history combined with your income will help the decision to approve your application as you can meet the loan terms as well as decide on your interest rates. Once your debt-to-income ratio is determined, and if you meet the loan qualifications, you’ll be presented with the fixed rates of your loan.

This means you can then purchase the vehicle of your choice and start making regular payments each month until the loan is paid in its entirety. Once the vehicle is paid off, it’s yours for the keeping. If the payments stop and the vehicle is not paid off, the vehicle will be repossessed.

Get Your Loan at Volume Chevrolet!

Ready to get behind the wheel of your dream car, truck, or SUV? Apply for financing online with Volume Chevrolet. If you have more questions or would rather go through the financing process in person, make your way to our finance center near Griffin. Contact us to learn more about our finance deals, if you should buy or lease, and more in the meantime!