If you have really bad credit, you've probably thought that the only way that you're going to be able to get a car financed is if you go to a buy here - pay here dealership. You know, those dealerships that finance their own cars?
While they guarantee auto financing for anyone that can come up with a big enough down payment, there is a catch, and it's a big one.
The cars that they sell are usually high mileage or undesirable models, with questionable mechanical histories. You end up paying so much more in finance charges, too. It's common for a buy here-pay here place to charge as much as 30% interest and in some states, laws have had to be established to prevent this form of predatory lending.
Cars are also priced very high at these types of dealerships. A car that may sell for $4000.00 at a regular car lot may be priced as high as $10,000.00, at a tote-the-note dealer.
So what can you do to avoid this if you need a bad credit auto loan?
The best way to get a bad credit auto loan without having to go to a buy here-pay here dealer is to do a little homework. You see, just because you've been turned down at a regular dealership in your town, doesn't mean that there aren't options for you. You can still get approved for an auto loan, and with some lenders - regardless of your past credit history.
Lenders that specialize in bad credit auto loans can help you with getting financed with little, to no money down.
One of the easiest ways of obtaining this is by working with online lenders. Whether you have a bankruptcy, repossession or just a lot of charged-off accounts, an auto loan is easily within reach if you simply use lenders that know how to overcome these obstacles.
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