Subprime Auto Loan

[Eugine]

A subprime auto loan is beneficial for people wishing to purchase a car. Without subprime loans, someone that had poor credit would only be able to purchase a car after they had saved the total amount needed, or managed to borrow the money from friends or relatives. The drawback of a subprime auto loan is that these loans have a higher interest rate than comparable loans made to someone who qualifies for a traditional, or prime, loan. This additional interest adds up quickly over the life of the loan, and, in the end, one will pay much more in total for the car. One potential way to lower this interest rate is by saving enough money to make a substantial down payment.