Banks have tightened up their belts, and it’s harder for them to issue auto loans for people with bad credit. The sub prime market took a dive. Even though the housing market is what dragged the economy down, it’s everyone that suffers for it. That includes used car loans, new car loans, bad credit auto loans and good credit auto loans.

So what are your options if you are looking to purchase a vehicle and you have less than perfect credit? Well, you have plenty of options. You have the discipline and ability to save your pennies, then you have the option of searching your local paper for a lower priced car. Be warned that dealing with a private party can turn into a hassle, and if you think car salesmen are bad, wait till you see some of the wheelers and dealers trying to sell their once prized possession. Private Party purchases can end up costing more in the long run than buying something from a dealer.

The safest and most secure way to purchase is through a dealership. I can already hear people arguing with me over that statement. I stand by it though. I personally feel much safer walking into an established business that can be held responsible for their actions, rather than some Joe Shmo meeting in a parking lot.

There are plenty of dealers that have managed to keep their sub prime departments open. They have a selection of banks that are able to assist people who are looking to purchase a vehicle and have less than perfect credit. That’s what the whole department thrives on. These are the dealers you need to find if you are looking to try for a bad credit car loan.

It’s not that hard to track them down. You can call local dealers in your area and ask if they have a special finance department. Simply call the dealer and ask the receptionist to be transferred to the special finance department, or the sub prime finance department. The names are often interchangeable. When they transfer you, ask the person who answers if they help sub prime customers. If they do, there a few more questions you may want to ask, like, how much of a minimum income do you need to have in order for them to have a chance of approving you with one of their banks?

There are some instances where dealers will be able to approve you before you come to the lot. It is very important that you are completely open and honest about your employment history, what you are looking for and so on. Lying about anything on an application can lead to that pre approval vanishing. Then you are not only wasting the dealers’ time, but yours too and adding an unnecessary pull on your credit report.

The internet is another valuable tool in locating dealers that are able to issue bad credit auto loans. There are sites that let you fill out an application and have it sent to a dealer that specializes in special financing. Before you go buck wild and apply for everything under the sun, remember that every application is a potential pull on your credit.

Dealers have more than just the name. By that I mean that they have more than just the brand in their name. If you are looking for a specific import or domestic vehicle, in many cases, if you are willing to work with the dealer, they may be able to acquire one of these from a sister store, auctions, or trade ins. Sub prime loans are mostly used car loans, as the prices of the vehicles people are looking for in that market are lower than the price of a new car. Dealers with sub prime finance departments know that they probably are not going to be able to get an approval for a loan on a new vehicle so won’t push you into something you do not want.

If you’re one of the many American’s that is considered sub prime, remember that there are still options available for financing a vehicle. Just because a bank will issue you a loan, doesn’t mean you should take it. Banks are still available to help, but they can not see into your personal life to know about any ‘unexpected’ and recurring financial obligations you may have. Like if you have a son or daughter that needs help every other month on their own rent. Take a serious look at your finances and do not take out a loan that will stretch you too thin. I wish you the best of luck, and happy car shopping!

Author Bio: Magnus Larsen is a staff writer for NatLeads, inc specializing in auto loans http://www.afterbk.com delivering quality car loans for ten years The webs best Bad Credit Auto Loans

Category: Automotive
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