Bad Credit Auto Financing

Are you in the market for a new or used automobile? Is your credit bad and you know you are going to need bad credit auto financing? This is the case for many people today and there are several available options for you to get the car or truck you need. Here are some of the ways you can get auto financing for bad credit without much trouble.

First, always check with your bank or credit union before you go anywhere else. They may be able to help you. You will have a vehicle for collateral that you are purchasing and if you have a good relationship with your bank or credit union they might be able to help you, even with poor or bad credit. They will also be more likely to help if you have some sort of retirement or investment account with them as well.

Second, you can go online and search for bad credit auto financing on the internet. There are several lenders that will help you out and they will have a pretty simple approval process right online. They will require that you have a source of income and have a down payment as well.

Third, you can go to a new car dealer, but you better be prepared. They will extend you a loan or lease, but only if you can come up with $2,500 or more down on the vehicle. The good thing is you will be able to get a new vehicle with a warranty and all the perks that come with the new vehicle purchase. This is an option if you can handle a large down payment.

Finally, there are the self-finance auto dealers, also known as the "Buy Here - Pay Here" car lots. This is a popular option for bad credit auto financing. You can go to a buy here pay here car lot and drive away the same day. Make sure you pick a good vehicle and have it checked out by a certified mechanic that they did not recommend to you. Most cities have a few of these car lots, so shop around and make sure you are getting what you need. Also, know that you cannot really negotiate much with them because of your credit standing and the interest rate they charge will likely be higher than at a bank. Still, it is a viable option if you really need a vehicle and can't qualify for a regular car loan elsewhere.

Mark J. Scott
07-29/2008

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