Car dealerships are not oblivious. They know full well that there are just as many consumers with bad credit as there are with good. Especially now, in this economic downturn, bad credit car loans are surprisingly easy to obtain. Many dealers offer zero percent down and delayed payment terms as long as you can prove you have a few simple things such as a stable job and residence. This is because credit scores have dropped all over the United States. Dealers are nonetheless carrying the same amount of inventory that they are constantly pressured to move, and as such, financing terms for individuals
with poor credit have improved.
Bad credit car loans don’t come without some strings attached. Such loans often mean higher rates of interest to compensate for the bad credit score. Because there is a higher chance that you will default, financing centers mitigate their risk by charging you more in interest. By setting up the loan this way, they are still expected to make a positive return over a block of several hundred or several thousand loans. Nonetheless, these people are often very desperate for your business regardless of what your credit looks like. Due to this, you can often finance a new or used car no matter what your credit situation is.
Bad credit car loans are most easily found in a number of specific places. These days, thanks in large part to the internet, you can find out instantly whether or not you are approved. They are able to determine your financing terms in minutes. Certain third party auto financing centers will be more than happy to offer you credit terms regardless of your past indiscretions or current situation. Some may provide financing on a vehicle of your choice, whilst others may direct you to specific financing branches of car dealerships that they have pre-existing relationships with.
A more local and direct source of bad credit auto loans is the dealership itself. Many used car dealerships will hold special “financing” events where they promise to offer credit to anyone that meets a few basic conditions. Some dealerships may offer these terms all year round. These are often your best bets to secure such financing, but you should be careful as they may come at a price.
Besides higher interest rates, some of these dealers may require that the car be secured with a device that can remotely immobilize it if you are behind on your payments.
Ultimately, finding and choosing amongst bad credit auto loans can be either simple or complex. The question is how much time you would like to put into the process. Finding terms that are even slightly more favorable than the rest can pay off tremendously in the long run. Remember that you as the consume have the ability and power to decide which financing terms to accept. Do not let someone talk you into a corner simply because you have poor credit. When you shop online and in person, you will find a new or used car you can be proud of.