We have a great choice of bad credit auto loan companies at the end of this article, but give this article a quick read first.
Is your credit dinged or damaged. Don't worry. You'll probably still be able to get a bad credit auto loan.
Many bank executives are saying that they've loosened credit standards to the degree that most people can get a car. If you can't get a loan at the bank, try the credit union. If you can't get it at the dealership, try online financing. Bad credit auto loans are out there, you just have to go shopping. In fact, you should shop harder for your auto loan than you should for your car. You will save more money in the long run.
The percentage rate you'll pay on your loan depends on how many "dings" you've got on your credit report. Shop around. You may find one company that will give you a loan at 15%, and the next one that will give you the money at 11%. A good financing manager will find someone to give you the loan. It may not be the best rate out there, but it will be a loan.
When it's time to hit the dealership, think of the auto purchase as 3 different negotiations. They are the price of the car, the price of the trade-in, and the auto loan.
An auto salesman will try to lump all three together because there is profit in all 3. Try to deal with each one separately, and get the best deal on each one.
If you deal with all 3 components together, it's easy to get talked into a bad deal. The salesman may give you a great deal on your trade-in, but turn around and charge you way too much for your new purchase.
These tips should help you save money, and get that bad credit auto loan you need.
Bad Credit Auto Loans: Yes, you can buy that car
