Need A Car But Have Bad Credit? Consider Bad Credit Car Loans!
Did your car recently break down for the last time and you know it's time to purchase a new one? But, what if your credit is less than perfect and you are worried about obtaining financing? Luckily there are options for consumers that need bad credit car loans. While these loans may have higher interest rates and require a higher down payment than the average auto loan, bad credit car loans can be an excellent option for someone who needs a reliable vehicle that they can pay monthly payments for. But where can you get bad credit car loans?
If you have an auto dealership in your area, consider talking to their finance department to see what type of bad credit car loans are available. You will want to ask about any subprime loan programs you may qualify for, and what requirements the program may have. One benefit of working directly with an auto dealership is that their finance staff likely have relationships with auto lenders than can help strengthen your chances of approval. Both new and used vehicles are generally available at auto dealerships, even for those looking for a bad credit car loan.
Buy Here, Pay Here Lots
Another option for consumers looking for a bad credit car loan is to visit a buy here, pay here lot. These auto dealers typically do not perform a credit check and require that the consumer pay a down payment in order to obtain the loan. Buyers are limited to the vehicles that are available on the lot, and will likely be required to purchase a used vehicle. If the buyer misses a payment the dealership will likely take the car back and the buyer will lose their down payment.
Things to Remember
There are a few things that buyers will need to remember when searching for a bad credit car loan. Most lenders will require a down payment of some form, and proof of income will also be required. Lenders, like Empire Auto Credit Ltd, may also ask for references and limit the buyer to a certain type of vehicle. These things can be true for both an auto dealership and a buy here, pay here lot.
It is also important to remember that getting a bad credit car loan will likely be easier when working with a finance department than on your own. The relationships that finance departments have with lenders can play a role in this, as can the wide range of lenders a dealership will have available to send an application to.