Frequently Asked Questions for Vehicle Financing & Buying

We’ve provided many answers to questions that customers usually have during the vehicle buying process. If you don’t see a question that you need answered, please contact us.

Frequently Asked Questions for Vehicle Financing & Buying

Q: What is IOU Vehicles?

A: Thanks for your interest in IOU Vehicles! We are a vehicle financing, & negotiating service that helps you get the best deal on vehicle purchases. Whether you’re buying a new or used vehicle, refinancing a vehicle, or buying a lease out, we will help you to get the lowest interest rates and monthly payments. We work to reduce the vehicle buying time, and eliminate the hassles of haggling with vehicle dealerships and private sellers.


Q: What types of vehicle financing does IOU Vehicles offer?

A: Customers can get vehicle financing to purchase a new or used car, motorcycle, boat, or RV/Trailer. Vehicle financing can also be used to buy out a lease contract, and refinance your current vehicle.


Q: Is IOU Vehicles considered a lender?

A: No, IOU Vehicles is not a lender, we wouldn’t have the flexibility to offer you the most competitive financing you can find for purchasing a vehicle. We do not lend directly to consumers, we use top rated lenders that compete for your business, and to win your business they must be willing to offer lower interest rates and lower monthly payments.


Q: What type of lenders does IOU Vehicles work with?

A: IOU Vehicles works with top rated lenders and subprime lenders for those with bad / limited credit such as first time vehicle buyers. Our goal is to offer the best financing solutions for those that want a new or used vehicle, whether buying through a dealership or private seller.


Q: How is IOU Vehicles able to offer vehicle loans with lower interest rates?

A: Our online lending partners do not hike up rates in order to cover overhead costs, so those savings are passed on to our customers. They are also able to approve customers with not so stellar credit, and lack of credit history as well. Because the top rated lenders that we use want your business, they are willing to lower their rates and fees, if any.


Q: Why do I need to pre-qualify for a vehicle loan?

A: You should pre-qualify for a vehicle loan so that you get a better understanding of how much vehicle you can afford before you step foot into a dealership. When you get pre-qualified, this eliminates the hours and sometimes days of haggling vehicle buyers experience at dealerships. With IOU Vehicles, we’ll quickly present you with several lenders loan quotes that are based on your credit worthiness.


Q: What information do I have to fill out in order to get pre-qualified to get a vehicle loan?

A: We would need the following information for pre-qualification; your name, address, monthly income, employment, and contact information.

When you’re refinancing a vehicle, or buying out a lease, we’ll need the vin number, vehicle model and make, year, mileage driven, and payoff letter if refinancing.

In order for lenders to view your credit history to determine your eligibility for vehicle financing, you’ll need to submit the following information; social security number, driver’s license, insurance, proof of income (paystubs, tax returns), proof of residence.

Note: You may be asked to provide additional documentation for some lenders.


Q: Will your vehicle financing service affect my credit score?

A: Pre-qualifications are considered soft hits against your credit since generally you will not need to provide your social security number, so your credit score should not get affected.

If you’d like to go forward to receive a vehicle loan after the pre-qualification process, your social security number is then required. Once an application for credit is submitted to our top rated lenders along with your social security number, our top rated lenders then perform a hard credit inquiry which will go on your credit report and may affect your credit score. Keep in mind, multiple hard inquires within a certain time range (14 to 45 days) for vehicle loans will be counted as one inquiry by credit bureaus. That is how we are able to get quotes from multiple top rated lenders and get you the best loan terms without your credit score being drastically affected.


Q: Will customers get charged a fee when applying for vehicle financing?

A: Customers do not get charged for applying for vehicle financing, there is no fee. There is no obligation when you get pre-qualified, you do not have to use the vehicle loans you get approved for.


Q: How long will my pre-qualification quotes be good for? Does it Expire?

A: Your vehicle loan approved offers are good for 30 calendar days and after that they expire. A pre-qualification becomes invalid before 30 days if the information you provided to get pre-qualified changes; such as you lose your job, you buy a house, or make another major purchase, this would drastically affect the information you provided to get pre-qualified.


Q: Why is it important to have a low APR when purchasing a vehicle?

A: An APR is the Annual Percentage Rate which is the yearly cost for the loan you’ll get for when using vehicle financing. The APR includes the interest rate, fees, and sometimes other charges that will be included in your vehicle purchase. The higher the interest rate, the more money you will pay out of pocket over the lifetime of the loan. A few points lower interest rate could save you thousands, and that is why it’s important for us to get you low interest rates for vehicle purchasing.


Q: Who is allowed to get a vehicle loan?

A: Applicants must be 18 years and older, (19 in Alabama or Nebraska). Applicants must also reside in any of the 50 states in the United States (with the exception of Nevada and Puerto Rico), this makes resident aliens, non-resident aliens, H-1 Visa holders eligible to apply for vehicle financing. If you have a social security number and you’re 18 and older, then you will be allowed to apply for vehicle financing.


Q: How is my eligibility for vehicle financing determined?

A: Before you apply, you want to make sure that you make a good effort to improve your credit history. Get caught up with as many bills that get reported to your credit report as you can. Ensure that your debt is minimized in order to get a low interest rate for a vehicle loan. You also will have to show that you have steady income in order to be eligible for vehicle financing. If you are not eligible, in some cases you may be able to use a cosigner.


Q: Are people with bad credit, and limited credit history allowed to get vehicle financing?

A: It is generally assumed that people with bad credit and limited credit history won’t get favorable interest rates when applying for vehicle financing. We will run your credit profile through several of our top rated lenders who will make the decision on whether to approve you for a vehicle loan.

Things that may help people with bad credit and limited credit history is to have a good job with steady income, or to use a cosigner. Other tactics are to take out credit cards, use them, pay them off and keep the balance low. There are many strategies to increasing your credit score, we recommend signing up for Credit Karma if you’re serious about improving your credit score. Also checkout out our top 5 credit repair tips to get an idea on things you can do to improve your credit score.


Q: Will my credit score affect the interest rate for vehicle loans I get approved for?

A: Your credit worthiness, and overall score are a few factors that will be used to determine the interest rates for vehicle loans you get approved for. All of our top rated lenders use their own criteria to determine the interest rate for borrowers. This is why we use several top rated lenders in order to secure you the best interest rate.


Q: Am I required to make a down payment in order to get vehicle financing?

A: No, you are not required to make a down payment in order to secure vehicle financing. Down payments can also be used to bargain with dealerships to get a lower asking price for the vehicle. If you’d like to lower the monthly cost for a vehicle payment, we do recommend making a down payment in order to decrease the financing amount. By making a down payment, you increase the chances of getting approved because because the lender does not need to cover the entire amount of the vehicle.

Q: Should I use a cosigner in order to secure vehicle financing with a lower interest rate?

A: Even if you have bad credit or limited credit history, you can still go through the pre-qualification process. If lenders come back and say you aren’t qualified, in that case we recommend using a cosigner to increase the chances of obtaining vehicle financing with lower interest rates. We recommend that you also review our credit repair tips.