Car Loan Offer

Don’t let fear keep you from getting your next car. If you are in the market for a newer or better car, don’t let bad credit keep you from getting one. You should know that even if your credit is less than perfect, there are still options available to you. We know that the better rates are reserved for those with better credit, but others can still get car loans With bad credit.

The first thing that you should do is figure out if you absolutely - positively need a new vehicle. If your car is in need of costly repairs that may or may not fix the problem and you’re tired of pouring more and more money into it or if it’s guzzling gas like it has a hole in the tank, then you should probably consider it. It just may be time to get a new car or at least, a “new to you” car.

Don’t be intimidated by what your credit report may or may not contain. The best advice is to find out for yourself before you go car shopping. There are several different outlets available to you where you can obtain your credit report for free and your credit score for a small fee. Once you know what you’re dealing with, then you can make the necessary adjustments to have everything work out in your favor. Doing this first can give you valuable information and then you’ll know what your next move can be.

There are so many dealerships out there that are willing to work with you. Think about it. Even though, the economy is said to be slow and that we’re in a recession, they haven’t suspended car production one day, have they? No. They haven’t. That means that along with all of the new vehicles that are being produced on a daily basis, there are also all of the ones that they’ve made in the past few years. Besides, people are trading, buying, and leasing cars everyday. There is bound to be one out there just for you.

Even though your credit may make you a little nervous, I would still check out some of the bigger dealerships. They have all kinds of promotions. I remember one promo that said that, “if you have to haul it, pull it, or drag it - just get your trade to them and they’ll give you $5,000 for it”. That’s a lot of money that they’re willing to give you for a trade that may or may not be worth that much. Also, the larger dealerships can sometimes come up with creative financing that some others may not. I’ve also seen ads that stated that as long as your income is at least $350 per week, they can get you into a car. Will it be the car of your dreams? I don’t know, but at least that option is available to you.

If your credit still really makes you nervous and you don’t want to deal with the bigger dealerships, there are some “tote the note” dealerships available. These types of dealerships are also called “buy here - pay here” dealerships. Instead of going outside of their company to look for financing, they’ll finance you. Of course, just like with any other loan, you’ll have to show them various forms of documentation like proof of income. Sometimes, their terms are a little different than with a traditional auto loan in that, you may be required to make weekly payments, instead of monthly ones. Make certain that you’re dealing with a reputable dealership with dependable vehicles. Even though this is a good option, you have to find the best ones in your area and steer clear of the ones that are questionable.

Another option for auto financing if you have bad credit is a finance company that specializes in bad credit loans. More than likely, they will require some type of collateral like a car title or some other high-ticket item that’s already paid for. Please know that the interest rates and fees with this type of company are usually much higher than with a regular lender. They are known to charge extremely high interest rates, which I have personally seen as high as 25%. I remember thinking - wait a minute, that’s a quarter on a dollar - that’s a quarter on a dollar! I couldn’t believe that it was even legal, but obviously it is. I understand that someone with bad credit is considered a high-risk borrower, but a quarter on a dollar? Sorry. I won’t get on my soapbox today, but know that it’s coming.

I also understand that the finance company has to make money and cover any potential losses, as well. I totally get that. I just don’t want anyone to lose their shirt, while they’re trying to save their shoes. You know? It’s like you’re being penalized all over again for mistakes that you may have made in the past. Unfortunately, when you’re put in a position with limited options, you have to play by their rules. Go into this with your eyes wide open and find out what all of the benefits and penalties are.

Another way to help ensure auto financing is to have a substantial amount for a down payment. Most people don’t have any money for a down payment and this can put them in the category of the 2% that can’t get financing. A substantial down payment is usually considered around $3,000 - $5,000 depending on the cost of the vehicle that you’re purchasing. There are even some dealerships that will help you as long as you have this amount for a down payment, regardless of your credit history. A substantial down payment lets the dealership know that you’re serious about honoring this contract and making the payments on this purchase because you have made a huge financial commitment on the front end.
Regardless of your credit history, there are ways to get auto loan financing. You simply have to do your research and shop around. Always check the newspaper for deals, as well as the internet. You can also ask family and friends about their most recent car buying experiences. I encourage you to shop around and find out what all of your options are in your situation. Don’t worry. Your next car is just around the corner.