Are you tired of driving your old car? Are you fed up with the daily breakdowns and maintenances? Do you want to have a new car of your own but somehow due to some reason you’re unable to get the loan? Then don’t worry. Now you can get loan through a guarantor. Usually depending on your income and past credit history bank gives you loan for various purposes. But often it so happens if your past credit history was not very good or maybe you don’t have any that is why the bank refuses to give the loan. Also if they feel that given your income amount, you may not actually be able to pay back the loan, they might refuse. In all such case you can have a guarantor for your loan. There is facility of car finance with guarantor. If you are willing to take loan to get a car and the bank refuses you can have a guarantor, based on whose guarantee the bank will give you loan with suitable interest.
If the loan provider feels that the borrower may not be able to repay his loan, then he will ask for a guarantee. If someone signs as guarantee for a friend or family, whoever is taking the loan, then that person will be known as the guarantor. The guarantor is to pay back the loan is the borrower fails on the obligations of the loan.
For getting car finance it is required to have a high credit. If you don’t have high credit, then the bank may not provide you the finance. In such case you will need a guarantor. The guarantor will be the co-signor and if by chance you (or whoever is the borrower) will fail to the repay the entire sum of the finance taken as loan and the interest, then the guarantor will have to pay it. However, you cannot just get any guarantor you feel. The person you will have as your guarantor must have a good credit, or probably higher than you. Only then the bank will provide you the finance.
There are certain companies which provide loans, however there are many limitations attached to them. One such company is Audi. A person may take car loan from Audi finance but in that case they are required to purchase only Audi manufactured, none other. In such case no personal guarantor is required. You will get the loan on all your own. But then, the range of tenure is also fixed from 1 year to 5 years.
Then again, it is better to take car finance from any bank than from any company as in the former case you will your own free choice as in which car you want and all. But if you take car finance from any private company then you will have various limitations enforced upon you, such as the limitations from Audi Company that you have to take an Audi manufactured car if you take loan from Audi finance.
However, while taking this loan you must beforehand make it sure if you can pay back loan with interest in the given period of time or not. It is essential to do so, because if by any chance you fail to pay back the total sum of money (Principal amount + interest) then your guarantor will have to give the entire sum as they were the guarantees based on whom the loan was given and also they act as co-signor of the sorts under which they guarantee their own assets or services.