Requirements for a Blank Check Auto Loan

A blank check auto loan has requirements similar to those for a traditional auto loan. The person must have a stable job, a good credit history, be willing to obtain full coverage auto insurance and be able to afford the payments on the loan.

What's the Difference between a Blank Check Auto Loan and a Conventional Loan?

The difference is that the the blank check auto loan approves the borrower up to a certain amount and allows her to purchase a car from anyone, anywhere, as long as it is no higher than the maximum amount. The car must typically be worth no less than $7,500. This type of loan cannot be used on a commercial vehicle, a motorcycle or recreational vehicle. The vehicle cannot be more than 7 years old and generally should not have more than 70,000 miles on the engine to qualify for purchase with a blank check loan. If the blank check loan is approved for up to $25,000, but the borrower purchases a car for $20,000, the loan is for the lesser of the two amounts. Blank check auto loans are traditionally provided by banks, rather than car dealers. This gives borrowers a chance to shop around, however they like, with a certain amount in mind.