Dealerships offer Used Car Loans With Bad Credit
Bad credit is no longer a problem now that many dealerships offer used car loans with bad credit or even no credit history at all. The car dealers of today are bridging the gap between the impossible to get conventional auto loans and the predatory and expensive bad credit loans. This makes it more possible than ever for those with bad credit to get into a car today.
How Can Dealerships offer Used Car Loans With Bad Credit?
Many used car dealerships today can offer their own financing packages. These financing packages are either backed directly by the car dealership or repackaged as a single loan to a bank. Either way it means that car dealerships are allowed to approve their own loans, at any terms, and to anyone. Since car dealerships are in the business of moving cars and making money, they want you to get a car as much as you want to get one.
Car dealerships that offer in-house auto financing often have a 100% offer that they can finance anyone. The car dealership will work with the borrower to figure out how much they can afford per month and what an acceptable interest rate should be given their credit history.
Are Dealership Loans Bad To Get?
Some people think that dealership loans are dangerous because the dealerships may talk you into getting a car you can't afford. This is a misconception. The dealership wants you to be able to afford your monthly payments when they finance your vehicle because otherwise they're not going to get paid. This means that an in-house financing dealership actually has a good reason to make sure that you get a car that you're both happy with and can afford the monthly payments on.
Dealership loans can also help people with bad credit prove that they are worthy of credit by paying their car loan bills on time. Once the loan is fully paid off, creditors will see these borrowers as good credit risks because they have already successfully proven that they can pay off loans on time and reliably. This means that a dealership loan can be one of the best loans to get.
How Can You Get A Used Car Loan?
A used car loan from a car dealer that accepts bad credit is obtained simply by walking into the dealership and talking to their financing department. The financing department will discuss your budget and your needs with you and figure out how much you're approved for. After that, the sales team will work with you to find you a car that's within your budget and that you like.