Having bad credit doesn’t automatically exclude you from getting a car loan. The fact of matter is getting yourself car loan online is as simple as filling out a short form. Most car loan companies will in fact send you a check that will arrive the next day so you can go about purchasing a vehicle immediately.
Getting car loan bad credit.
The one downside to getting yourself a bad credit car loan is that you will usually have to pay a slightly increased interest rate in order to be approved by a nationwide car loan lender. The interest rates that are typically attached to your car loan are directly dependent upon your credit score.
In order to go about lowering your payments, one of the most sought-after solutions is to extend the length of your car loan. This is because the longer the duration of the loan is, the less money that needs to be paid off of it each month. You need to be careful though if you go about this solution because you should always keep in mind that the longer that you have a loan for, the more interest you will end up paying off in the long run. More interest means more expensive. So it would be wise in this case to utilize a car loan calculator in order to determine what the proverbial sweet spot would be for your own unique financial situation.
Finding a bad credit car loan lender.
By far the best way to go about getting yourself car loan is to utilize the services of a online lending institution that specializes in helping individuals that happen to have bad credit. All it takes is for you to apply once and as a result they will sift through a plethora of different offers in order to find the one that fits your unique financial situation the best.
While some online lending institutions will only work through one financing company, others work with a whole network of financing institutions most of which specialize with helping individuals that happened to have bad credit. You can always request a quote with any of these companies in order to determine on your own terms who was providing you the best financing rates and then make your own decision.
How to apply online.
Applying for a bad credit car loan online takes a mere few minutes to do. The only information that you will need to provide to them is your own contact information, your employment information such as your monthly and yearly income, and the amount of money that you desire to borrow. One of the smartest tips that you can go about doing it is to apply for a slightly larger amount than you intend on using in order to be capable of compensating for any additional licensing fees that may come your way at the car dealership.
After sending information to any of these different bad credit car loan companies, your application will then be reviewed. If you fill out the form during business hours, you should anticipate getting a reply within a few minutes through e-mail or over the phone. At this point you can ask them any questions that you would like and either go for a loan right there or decide to wait and evaluate other options that will be presented to you.
Buying your car.
The moment that you receive your approval notice, you’ll usually receive your bad credit car loan package in the mail the next day. This package will include some nominal paperwork as well as a check for you to utilize at the car dealership. At this point you’re considered a preapproved car buyer and can simply walk into a car dealership lot and purchase a car of your choosing.
You are not only limited to purchasing a car through a dealership but you can also purchase one through an individual with your new car loan as well. When the price has been negotiatied, you can simply fill out the sellers name and the amount of the car on the check. Once you’ve submitted the purchase information to your bad credit car loan lender, your information will be processed and you can enjoy your brand-new car because you’re all done!
I think getting a car loan directly from car manufacturer would be cheaper than getting it from bank.Yeah if you are looking for small installments for long duration then bank would be the only solution. I have never thought of getter higher loan amount to bear additional expenses along with loan amount it’s a good idea.
Hello Wendy,
Your best bet would be to have someone cosign for you if that is possible. There are many great low APR deals on new vehicle auto loans. Honda, Jeep, Acura, Mercedes and several others are offering 0% to 2.9% financing deals. This is the time to use the bad economy in your favor.
If you are not able find a cosigner you can get an auto loan for bad credit but you are going to pay a lot in interest. The higher interest rate the more you will end up paying in the long run.
Your goal should be to get the interest rate as low as possible. When you negotiate the price of a vehicle never negotiate by the monthly payment. When you do this the dealer will work the monthly price down to meet your budget then jack up the interest and the length of the loan.
As I mentioned you can get an auto loan if you have bad credit with no money down but expect to pay over 10% interest at best. If you do go with a bad credit auto loan make sure you put as much money down as possible on the vehicle. I wouldn’t go for car of your dreams either. Just get a budget car that will get you around and when your credit improves you can upgrade.
Visit all the local banks in your area to see what kind of APR they can offer you. Also check the credit unions to see if they are accepting new clients which many of them are right now. Usually you can get a loan cheaper from a credit union verse a bank.
Once you find the best auto loan ask them ( the banker ) to give you a copy of their offer. Then when you find a vehicle you like take the bank loan quote to the dealer and see if they can beat that offer which many times they will. Car dealers usually have 10 to 20 different banks they deal with so one of them should be willing to beat your bank loan offer.
Good Luck,
Daniel
I am in search of an auto loan with little money down. My credit is not too good due to numerous factors including a recent divorce. Any advice or assistance that could be provided would be appreciated.
Thank you
I can understand why they can’t get a used car auto loan. It’s because they have a big negative mark on their credit report and a lower credit score I’m sure due to the foreclosure.
Although if they have a combined income of 200k a year they should be able to find some finance agency that is willing to work with them.
You should contact these used car dealers down here in Florida. They can’t get anyone financed. I spoke with a woman yesterday, she makes 120k a year and her husband makes 80k a year and, because of a foreclosure, they can’t even get him a used car.
Hi,
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