When purchasing a new or used vehicle, there are a number of things to take into consideration. The least of which is where you will be obtaining financing from. If you have bad credit, your best option is to purchase a vehicle from a dealership. To be more specific, a dealership that has a special finance department separate from their regular finance department.

A special finance department in a dealership atmosphere means that they have sub prime banks they are affiliated with to get car loans for their customers. When a dealer has sub prime banks, they are able to finance people with little credit, no credit, and bad credit. Not all dealerships have the ability to obtain auto financing for people with bad credit.

Of course, it would seem beneficial for all dealerships to have every lending option they can get their hands on affiliated with them, however this is not always the case. A dealer needs to have the staff available to man an entirely new department. This can be considered a gamble to some dealerships who are already turning a nice profit without tapping into this market.

It’s also an issue of space and inventory. A dealer who helps people get bad credit auto loans needs to be able to accommodate their customers vehicle and budget needs. Many people who are trying to get a vehicle with bad credit are looking for a lower priced vehicle, one that they will be able to afford the monthly payments on without having to struggle from paycheck to paycheck. This means that a dealer will have a large used car inventory.

Dealerships usually have a steady stream of used vehicles coming in, whether they are lease returns or vehicles that were traded in by other customers. Many vehicles that are turned into the dealer as a trade in will never see it to that dealerships lot. Instead, those vehicles will be sent to the auction, or handled in a variety of different fashions, but are not at the level of quality that the dealer needs to present on their lot. The dealer will have to try and find used vehicles from other sources. This is a good amount of work, and can often require having a staff that simply tries to locate quality vehicles for the dealerships sub prime department. Bad credit auto loans usually will not be given for high end luxury vehicles, or high priced cars, so inventory is very important.

A special finance department also has a staff that is conscious of their customers needs and concerns, and since they are able to finance more people, more often, the sales staff will be willing to work with you regardless of your price range or credit score. Usually, if the dealer can’t finance you right away, they’ll go over your options of what they will need to get you approved, rather than say, “We can’t do anything for you,” and ushering you to the door, as a dealership that doesn’t specialize in bad credit car loans would do.

You can open your local yellow pages, or search online for a dealership that specializes in special financing. There are also options to submit your application to a company that has already prescreened their dealerships to ensure that they have the inventory and lenders available that specialize in bad credit auto loans.

It’s always recommended that you do your own research to decide what you can afford. If you have bad credit, you may be surprised when a dealership says, “Yes! Yes we can finance you!” You can then take that number and search the lot for a vehicle up to that price in their lot, however, just because they offer that much, doesn’t mean that you should take it all. Find out how much the monthly payments will be and whether you can afford that or not. Always make sure that you fully understand the terms of the loan, and that you feel comfortable with them.

Author Bio: Anne Thurgar is a staff writer for CyberLead, inc http://cyberleadinc.com specializing in auto sales leads http://www.carcredit.com delivering quality car loans for ten years http://www.carapproval.com The webs best Bad Credit Auto Loans

Category: Automotive
Keywords: car loans,auto loans,car financing,bad credit auto loans,bad credit car loans,automotive financing