Bad Credit Car Loans

Many people with bad credit think that they have to do without a reliable vehicle that they want to drive because they can’t get a car loan.

Nothing could be further from the truth there are lots of bad credit car loans available today. Anybody with a steady source of income should be able to get a loan to finance a good reliable car regardless of their credit record.

Shop around for a bad credit car loan

The key to getting a good deal on a bad credit car loan is to shop around for the loan before shopping for the car. Go to a variety of lenders and see what kind of loan you can get before you look for a car. That way you’ll know what kind of loan you can get before you go to the car dealers.

A good place to look for bad credit car loans is online there are lots of companies, banks and other entities that issue car loans to people with bad credit. The market is highly competitive and these lenders want your business. That means you should be able to find a good deal on a bad credit car loan.

If you visit several lenders and don’t see the interest rate or amount of money you want offered don’t be afraid to ask. Ask the lender if there is anything you could do to lower the interest rate or increase the amount of money you could borrow. Since the lenders want your business they might be willing to work with you. Especially if you are willing to put a large down payment or trade in a car you already have as collateral.

Once get financing go to the dealers and tell them you have financing. Dealers will be more willing to work with a person who has a loan.

A bad credit car loan from the auto dealer

You shouldn’t neglect auto dealers as a source of bad credit car loans. The auto market is depressed right now and both new and used car dealers are stuck with large inventories of cars they can’t move. When a car sits on a dealer’s lot it costs the dealer money so the dealers want to move those cars.

If you see a car you really want and you have bad credit go and explain your situation to the dealer. Ask the dealer if it is possible for them to give you a bad credit car loan. Ask the dealer if there’s anything you can do to get the loan such as trade in another car you own or make a down payment. The dealer might be willing to work with especially if the car has been sitting on the lot for awhile. When you are talking to the dealer don’t be afraid to haggle or ask for a lower price on the car before you apply for the loan.

Competition can also work in your favor because there are lots of car dealers out there. If one dealer won’t work with you go to another. Before you take your business elsewhere tell the dealer you’re going elsewhere. They might change their mind to keep the sell. It also pays to tell other dealers about the great deal you got elsewhere they might be willing to come down in price or offering better financing to get your business.

When you are car shopping don’t neglect used cars because they are substantially cheaper than new vehicles.