Blank Check Auto Loan Only

Blank check auto loans only work in a certain way to protect both the lender and the borrower. The borrower, once approved, fills out the check addressed to an individual owner, dealership, or auction house for the price of the automobile. A borrower may get approved for a higher amount than the blank check auto loan, but he is under no obligation to purchase an auto for the greatest approval amount. Lenders will typically approve a borrower's request for an amount they feel the borrower could comfortably handle with monthly repayment obligations. Whether or not the borrower uses the entire amount authorized is of no concern.

The interest rate on the blank check auto loan will not fluctuate unless the borrower is refinancing because lenders only allow a fixed interest rate at this time. The borrower and/or the co-signer is restricted to the amount of the payment of an automobile purchase. These transactions only have a small window of time for purchase, generally 30 to 45 days before the check becomes void. Funds are available for the purchase of a new or used car, truck, SUV, minivan, or motorcycle. The purchase can include the taxes, license, registration, credit insurance, extended warranty, service contracts, and any other costs normally associated with the purchase of an automobile.

The financial transactions clear if the purchase is made prior to the expiration date. The amount filled in on the document will cover the total cost of the auto plus miscellaneous expenses. Interest will be charged on the entire pre-approved amount of the blank check auto loan. Approval usually takes a few days, with the addition of 3 to 5 days when sent through postal mail to reach the borrower. If the borrower decides not to use the blank check auto loans only because he can't find the right automobile in time, he can get an extension. The expiration date can be lengthened to accommodate the pickiest of auto purchasers.

It is recommended that those borrowers in a hurry to receive their blank check auto loans, only pay what is absolutely necessary to have a rushed mailing of the documents. The psalmist tells us, "The wicked borroweth, and payeth not again" (Psalm 37:21). We must be careful about how much we borrow and that we pay back all we owe. Mailing fees may be added into the balance of the check and the borrower may find himself paying interest over the course of a few years on the expedited mailing service. Credit experts recommend a borrower negotiate first with the lender for interest rates, then negotiate the purchase price of a new or used car to fully receive all the benefits a blank check auto loan can offer.


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