Phoenix, AZ -- (SBWire) -- 03/13/2013 --Credit-yogi.com wants folks to know there is guaranteed car financing available, and will explain facts about it, including:

- What it Is
- The Financing Process
- Terms of Financing
- Scams

Guaranteed Auto Finance Clarified
Guaranteed financing for cars is a free service and is available to borrowers whose credit isn’t good. Businesses that offer this type of financing permit buyers to request the amount of credit they need to purchase the vehicle they’ve chosen. The agreement terms do not limit the options a buyer has. The purchaser can look elsewhere for a vehicle and bring in an outside loan agreement for financing.

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Ingredients of Financing
The first step in the guaranteed car finance process is finding the car one desires. Once this is accomplished, the buyer applies with a guaranteed financing company for the loan. A person will need several pieces of documentation, including a driver’s license, his full name, address, and telephone number, employment history, and banking information. He may also have to produce a current utility bill and proof of mortgage payment or rent paid.

Program Terms
The loan agreement states that the guaranteed car financing company maintains possession of the vehicle until the loan is paid off. The company then charges the buyer “rent” for use of the car during the length of the loan. The “rent” includes the monthly loan payment plus interest and financing charges. The borrower is responsible for maintenance of the automobile while the loan balance is paid down. This is a mutually beneficial proposition, as the lender receives a tax deduction in consideration of taxes on the vehicle and the borrower doesn’t increase his net asset worth because the finance company has possession of the car.

Avoid Scams
While the majority of businesses offering guaranteed financing for cars really want to help those who have poor credit, not all of them do. There are many scams revolving around this business. Ignore any company that requires up-front fees. This practice is illegal. Watch out for the co-signer scam, in which the lender puts the vehicle in the co-signer’s name only, not in both names. This means that a) the co-signer will be responsible for any missed payments and b) the borrower’s credit score will not improve because the loan isn’t in his name.

About Credit-yogi
Credit-yogi.com is a respected consumer resource website located in Pittsfield, Massachusetts backed by close to 300,000 legal and fiscal experts. There is never a fee for this service, so if answers are needed, go ahead and ask. For a free initial consultation, dial 866-964-9644.