Getting bad credit car loans is not as difficult as it may first appear to be. Low credit score? Questionable items on your credit report? In most cases, this is not an obstacle that cannot be overcome by a dealership with a quality special finance department. Car loans in general are probably one of the easiest loans to qualify for regardless of credit history. If you had decent credit during the near-collapse of the economy, you could still get a hassle free auto loan. You may have had to hunt for financing if you had bad credit and were trying to buy a new or used car in the past. Not so anymore, dealers and lenders are more than happy to accommodate customers from all ends of the credit spectrum.

The auto manufactures financial crisis that happened during the economic downturn had many dealers shutting their special finance department’s doors. However, since the panic has settled, lenders are realizing that subprime auto loans are not going to have as big of an impact on the overall bottom line as high risk mortgages would have, and with subprime auto loans making up almost half of auto loan lending, it’s foolish not to reopen their doors to that specialty market.

If you’re not sure where to go, auto financing for people with bad credit is a hit or miss. Not all dealerships have the lenders affiliated with their dealership that offer subprime loans. If you try to call in advance and ask if the dealership helps people with little credit, no credit, or bad credit get financing, chances are the salesman is going to tell you what you want to hear to get you into the dealership, trying to get you to make a commitment to a car and get someone else to sign on the dotted line. It’s true that even if the dealer specializes in subprime financing, you may still have to have a cosigner, however, they may be able to circumvent that requirement if you have a decent amount to put down on the vehicle, as it eliminates some of the risk the lender takes on when issuing bad credit auto loans.

Subprime loans are not just for used cars, you can still get a new car with bad credit. Many dealerships have their subprime finance department stationed on their used car lot, as low cost vehicles are usually what people with credit issues are looking for, but if the dealer has new cars and you qualify, they’ll be more than happy to put you into the new car of your choice. On a side note, if you find a dealership that can finance you, and you feel like you are settling on a car, and not getting what you really want, ask if they have any sister stores that may have larger inventory. In some cases a dealership can obtain a new or used car from their sister store in an auto group and bring it to you so you do not have to travel from store to store.

There are websites online that help you connect with a dealer that can finance you. Beware sites that offer to find you the best interest rate by sending your application to a number of banks or financial institutions, your voice mail will be full, mailbox cluttered, and email unmanageable after submitting just a single application on a site like that. Try to find a site that offers to send your application to a single dealer that specializes in subprime financing, and talk with that dealer. Pick up the phone and call them if you do not get an immediate response, and try to be as polite as possible. If they can’t finance you, explain your need, calmly and politely, and ask if they know of any dealerships in the area that may be able to help. If you’re cordial, most people will be more than willing to offer a suggestion to get you help, even if it takes away business from their store. Who knows, maybe later on down the road, you’ll remember the kindness and buy another car from their dealership, or even share with your friends how helpful they were. Word of mouth can be one of the best and worst forms of advertising, the dealer knows that, so brushing you off isn’t in their best interest.

As always, when you do find a dealership that offers bad credit auto loans and is able to finance you, remember that the amount that you can be financed for might not be what you can afford. Take a close look at your personal finances before you go to or speak with a dealership so you know what you need your monthly payment to be at. Also, try and factor in things like insurance and maintenance, things that are required but not a part of your monthly payment. If you buy a sports car, your insurance is going to be higher than if you buy a sedan. Last but not least, and often overlooked, the price of gas. Think about how far you have to travel on a daily basis, and the cars mpg. It does you no good if you can afford everything but the gas.

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
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