If you have a low credit score, you may think that you have few options for auto financing. Dealerships promising that "we finance anyone" can be a temptation. Are they good or bad? Are they safe to buy cars from? Let's look into the in's and out's of this type of buy here pay here auto finance.
This type of buy here pay here auto finance involves a direct contract between you and the dealership. There's not a real loan company to be found. If you have bad credit, you may be thinking that this will help you. It won't and won't do anything to help your credit rating.
One of the first major downfalls of this type of dealership is the requirement of a cash deposit upfront. Usually, this equates to what the dealer paid for the car wholesale, so you just end up making payments to pay the dealers profit on the sale. Plus interest, mind you.
If you have bad credit, what you need is a good second chance at auto financing. Fortunately, not all companies are out to take all your money. There are some good ones that are in the business of helping people that have credit problems, to get good car loans. With little to no cash down, you can secure good auto financing through respected online auto lenders. Many people aren't even aware that these types of companies exist. They work by getting you matched with a lender that has the guidelines to approve you, based on your individual circumstances.
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