Auto dealerships DO finance bad credit risks, contrary to what you've heard. Sure, there are predatory lenders out there, but that certainly does not mean all private lenders are out to get you. What is required is that you do careful research and compare contracts before signing an agreement.
First, consider what bad credit means. You can't be approved by a traditional lender. However, if you are capable of showing evidence of financial responsibility, you may be able to get a loan regardless of low credit score by private institutions and companies. Most people are so delighted to be approved with bad credit, they may even settle for poor quality automobiles, or bad contract deals.
This is why you have to shop around! Don't be easily impressed and be aware that there are many private lenders that are willing to work with you.
What Happens Now?
If you are approved by an online automobile lender then you can find a car that you like - not just the one the car salesmen matches you up with because of your credit rating. Indeed, visiting only one car lot may only give you limited options. Choosing an online source of funding allows you shop in multiple locations for a car that appeals to you.
It may surprise you to know that many bad credit customers are able to lease new and late model vehicles. Pre-owned and used vehicles are also options, and they may be preferable to some borrowers who want short-term contracts. After all, short-term contracts can build up your credit score more quickly.
Many people prefer online bad credit automobile lending because of the flexibility of the plans. For instance, let's say your vehicle suddenly "dies" and your left alone with no transportation. Right about now you’re a nervous wreck. You’ll take anything, right? That's a big mistake if you go to a car lot and settle on the only car the salesperson is willing to lease to you - a 1995 Jalopy XL. Wouldn’t it be better to wait on it, and actually find a car you like by shopping around dealerships, knowing you already have approval? The versatility of an online loan is the main advantage. The independence is also a great feature, as you don't have to worry about tote the note contracts and can make your own decisions.
What About the Interest?
The interest is where things get tricky, and truth be told, a lot of dealerships and predator lending companies will take advantage of you…if you let them! Remember though, you still have the power to say yes or no, and to do your research in advance. The main thing to remember about interest is this:
- You will be expected to pay some interest, and it will be higher than a traditional bank
- You should investigate your state’s legal interest rates to make sure the company is not charging you excessive amounts
- Ideally you eliminate interest by paying more down initially or paying higher weekly payments.
Most private lenders want your business, and subsequent contracts after you pay off your initial contract, and so will charge you a reasonable rate. Of course, if you cannot afford large payments every week or down, then higher interest is the consequence. However, you may discover after comparing companies that the interest rate is not as high or unmanageable as you feared.
Speaking only for ourselves, we are confident that we have the LOWEST prices you can find anywhere else. Go ahead and do the research. You will find that our interest rates (on a case by case basis of course) are the most competitive in the private lending industry.
The fact of the matter is that everyone is going to need help at some point. You have to have a vehicle, and private lenders have to make money somehow. You are their target audience and if you can show proof of financial responsibility that will work in your favor.
Why not apply right now for our online lending program? You don’t have to wait days or weeks, or suffer any embarrassment. You can know within 60 seconds and there is no obligation!