Auto Loans With Poor Credit - The 4-1-1 For Your Approval
28 June 2009
Auto loans with poor credit are not every car dealers specialty and there are some things you'll want to know before choosing a dealer to work with. Here's the 4-1-1 to help get the poor credit auto loan that you need...
Can they help you?
*4 questions to ask upfront
*1 car buying tip to consider
*1 final thought about your new loan
If you're looking to buy a new or used car and know ahead of time that you have poor credit, then it's beneficial to know what to ask upfront so that you do not waste your time working with a dealership that will not be able to get you approved for the auto loan you need.
4 Questions To Ask Upfront
1) Does the dealership have a special finance department?
If they don't, it doesn't mean that they cannot help you, but the following questions become more important. If they do, then great! They take auto loans with poor credit seriously and will probably be able to help you.
2) Does the dealership buy cars specifically for special finance?
If the dealership does not buy cars for special finance, then you may run into a wait and see type of situation. I've worked for dealerships that had all the right lenders and the right people to get approvals, but never seemed to stock cars that would fit for the approvals.
What this meant was we would have an approved customer that we' d have to ask to wait until a car came along, usually as a trade in, that would work for the approval before we could put a deal together. This sometimes took weeks and that's no good for you if you are wanting or needing a new car now.
3) Does the dealership work with one or more of the following special finance auto lenders?
*Credit Acceptance Corp
*Consumer Portfolio Services
*United Auto Credit
These are some of the nations top special finance auto lenders and if the dealership you are talking to is not working with at least one, preferably more, of these lenders, then they definitely do not take special finance seriously and you should look elsewhere.
Unless, they can answer yes to question 4.
4) Does the dealership offer in house financing?
If the dealership is both selling cars and offering their own in house financing, then they are all about helping people get auto loans with poor credit. All you'd have to do is make sure they have a car that works for your wants / needs.
1 Car Buying Tip
Flexibility is the key to auto loans with poor credit. If you set your sights on one (and only one) type of car, ex. that 4x4, lifted, truck with the cool paint job,. then you might be setting yourself up for some disappointment. This disappointment comes when the dealer tells you that it will require twice as much down and three times more in monthly payments, then you had expected, in order to buy it.
More often than not it's easier to get approved first and then pick out a car that fits the auto lenders loan approval. Of course, you'll want to only buy a car that fits your needs, but be flexible and put your needs before your wants.
1 Final Thought
You may not always get the exact car that you want when you buy a car with poor credit, but keep in mind that rebuilding your car buying credit is a process and you'll need to crawl before you walk and walk before you run.
Use your new auto loan for poor credit as a stepping stone to rebuild your credit and then look to get your dream car on the next go around. Remember, you are only dating your new car, not marrying it and it's easy enough to get a new one in a year or two.
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