Auto Bad Credit Loans - Prior to making a decision about which model or make, go to your bank or credit union. Of course, you can't get those a no-interest car loans from the bank, since they're promotional veheicles used by the dealers and manufacturers to sell cars. But if you have bad credit problems, it's not probable you'll get those great loans anyway.
Auto Bad Credit Loans: Reasons to go to a bank first.
If you can get approved for a car loan in advance from the bank, it will give you more leverage in negociating with dealers for a better rate. You’ll also know in advance how much credit you have available to purchase a car.
Credit unions generally offer the lowest interest rates of any financial institution. Historically, credit unions would be especially picky about granting loans to the auto bad credit applicant. But today they are much more likely to consider the entire picture of your finances, especially if you have an account with them.
Your credit union or bank may be more likely to bend their guidelines if you have had an account with them for any lenght of time. Try to plan a meeting with a loan officer so you can explain any negative items in your credit history.
Manufacturers and Auto Loans for Bad Credit
If your credit issues were relatively minor, or well in the past, it's worthwhile to research the credit requirements for the loans. You may be surprised to find you qualify. You may also be able to negotiate getting promotional financing in exchange for putting a large chunk of the money in a special account to cover any defaults.
Car Dealers and Auto Loans for Bad Credit
You certainly can get a great deal from a dealer, but only if you do your homework, check every letter of the agreement, and don't let yourself be hurried. Here are a few itemss to watch out for:
The negotiations over the price you'll pay, the terms of the loan, and what you'll get when you trade in your old car are really three separate negotiations. Dealers often play a shell game, passing costs from purchase price to loan to trade-in offer. They may show you low interest rates on the loan while your trade in gets nothing and you pay well over actual value.
Dealers like to give the impression that you have to buy your car on the same day you first show up to the dealership. Consider alternatives, talk it over with friends or relatives, and compare one dealer's offer with another's. Time is on your side.
Be especially careful of dealerships that advertise bad credit auto loans. Those dealers tend to be particularly skilled at hiding reasonable loan interest behind a overpriced car. If you do go to one of these dealerships, make sure you've researched car price.
Auto Bad Credit Loans
Online Auto Loans for Bad Credit Loans Applications
Don’t feel like discussing your bad credit in person with a loan officer or car dealer? You can apply for an auto loan online. While applying online may not let you make your case in person, it does have advantages:
Easier and faster to compare the rates of different lenders, and by the very nature of the web, everything is in writing.
No one staring you down trying to get you to take a bad credit auto loan you don’t want.
Easier and faster application process.
At times, a much faster acceptance. Some websites will even give you an instant preliminary decision.