Why Do Car Dealers Want a Down Payment For a Car Loan When You Have Bad Credit

When you have bad credit, car dealers frequently want down payments for car loans for a number of reasons. Sometimes it's the lender that wants a down payment as part of what is called a 'stipulation'.

I'll explain to you how this works and give you a practical example.

When you fill out a credit application and to try to get approved for a car, the finance manager (at one time was me) would then fill out the rest of the credit application with the information about the car that you wanted to buy. This would include the vin number, make, model, mileage and all that jazz.

What happens then, is that the credit application is received by the lender. In some cases, the application may be submitted to numerous lenders to not only see what you could get approved for, but also how much money can be made on your car loan with each particular lender. (This is why when you have even good credit, your application gets sent to multiple lenders by the dealer.) Each lender then replies with a response.

Based on a vehicle that you have taken a look at or wanting to buy, the lender may approve you for financing for that particular vehicle, but add the stipulation that they will only finance a particular amount for that particular vehicle. This then places the burden on the dealership of doing one of two things... either lower the price of the car to the amount that the lender will allow or the dealer has to request that you make up the difference.

While supply and demand can dictate that some vehicles will require them to be sold at a higher price and far above loan value, there are a lot of great deals on both used cars and new cars right now. Finding a good price on a vehicle is the key to eliminating the need for a down payment.

One of the easiest ways to get approved and get the best deal on secondary financing (bad credit car loans) is to compare offers online. There are a few good sources that allow you to do this.

Why Buy Here, Pay Here Programs Are a Bad Option For Bad Credit Car Buying

For people with bad credit, the appeal of guaranteed auto financing is hard to resist. Buy here, pay here programs advertise no credit checks which appears to be very promising. However, like many other situations in life, this offer is often revealed to be too good to be true. The thing that most people fail to see is the disadvantages far outweigh the benefits in this type of offer.

"Buy here, pay here" programs do not have to report to any of the major credit bureaus 99 percent of the time. As a result, your credit is not improved when you make timely payments. This is not the best option if you are trying to get a loan and repair your bad credit at the same time.

If you are short on funding and have bad credit or no credit at all, you may resort to a "buy here, pay here" program. Since many people like yourself do this out of desperation, dealerships of this nature get away with charging you up to two hundred percent more than you would pay if you had gone through a good online secondary lender.

No one with good sense would be willing to pay 20 to 30 percent interest on any loan, let alone a loan for a car. These establishments play on the desperation of customers which makes the reason for their continued existence quite clear.

Reputable online secondary lending companies or sub-prime lenders are more than willing to provide loan approvals, even after disastrous credit situations such as repossessions or bankruptcies. Some secondary lending companies have applications online which allow you to instantly know whether or not you have been approved and for how much.

No matter where you decide to finance your next car, make a careful decision. Educate yourself thoroughly about your options and only consider the use of "buy here, pay here" programs a last resort.

Where's the Best Place For Getting Approved For a Car Loan When You Have a Really Bad Credit Rating

When you have a really bad credit rating, it can leave you feeling a little down in the dumps about getting approved. So many different lenders have so many different guidelines and the car dealerships, well... they just don't seem to make things clear when it comes to auto finance. It can seem like a losing battle and that you'll have to wait for years in order to be able to have your credit rating repaired enough to qualify for a nice car.

Do you have to wait years in order to qualify for a car loan?

Although you most likely will not qualify for a very expensive vehicle, you can obtain auto financing while you're still waiting for your credit rating to improve. Specialized lenders that help people with bad credit ratings can make the difference between your being approved for a nice vehicle with reasonable terms, or not being approved at all.

What type of down payment will be expected?

There is a myth that if you have bad credit, you always have to have a down payment. That's simply not true. The loan value of the vehicle being in-line with a reasonably priced auto is what makes the difference. If you're required to have a substantially large down payment, that doesn't help your finances, does it? It's better if the financing can be worked in sync with your choice of car based on your approval amount.

Where is the best place to get approved with really bad credit?

Although it's new to many people, lending services that are available online can help you to be paired with a specialized lender that is in the business of helping people just like you, to overcome their credit challenges with a good car loan. It's easier than most people think, although many are more comfortable with the traditional car dealer routine.

Where is the Best Place to Get a Car Loan With Bad Credit

So where exactly is the best place to get a car loan when you've got bad credit?

First of all, you certainly want to avoid the following...

Avoid Buy Here Pay Here Dealerships. These types of establishments that offer in-house financing charge extremely high interest rates, price their cars at retail or above, and generally always want a down payment. This is not the best place to get a car loan and certainly not if you're wanting to save money. Buy a car from one of these places and you'll be paying not hundreds, but thousands of dollars more for finance charges than you have to.

Avoid Dealer to Dealer Hopping. Don't go hopping from one dealership to another trying to get approved. So many people with bad credit do this and it leaves large numbers of credit inquiries on your credit report. Those inquiries stay on your credit report for two years and they show that you're having a hard time getting approved. When you go to a second or third dealership trying to get approved, the dealer can see the banks and loan companies that you've been sent to already and have been turned down. So, if you're doing the dealer to dealer hop, stop now!

Online Lenders Save the Day. If you have bad credit, the best place to get approved for a car loan is online. Now don't go entering your information into 15 websites. There are a couple legitimate sources on the internet that allow you to either search through a database of lenders. There are also sources online that will pair your credit history with lenders that are guaranteed to approved you. In my opinion, online sources are the best place to get a car loan if you have bad credit.

Where Can I Get a Car Loan

Many people ask, "Where can I get a car loan"? The answer depends on whether or not you have good or bad credit. Let's look at options for both.

If you have good credit...

Car Dealerships

Local banks

Credit Unions

Online Lenders If you have bad credit, then the best option for you is to use an online lender, as well. There are companies now on the internet that have special finance programs that base your car payments on your monthly income. It's very simple to get approved and a down payment is not needed unless the amount financed exceeds the loan value of the car. If you don't understand that, don't worry. They'll provide you with all of the information that you need. Sources are available online now, that were unheard of a few years ago. In fact, many people that have a bad credit rating, don't even know that these lending sources are available for everyone.

If you have bad credit, you would appreciate...

No money down

Great interest rates

Low monthly payments, based on your income

Being able to buy your car wherever you want to

Getting approved in minutes That's what some online sources provide you with, when you take action and ask for a loan. It should be clear to you, by now, that car dealerships are not the answer if you have troubled credit. Car lots are no more than middlemen that take your application along with the price of the car that you're wanting to buy and simply submit it to lenders. You can save money and time by doing this yourself, online. You'll also get approved, much easier.

Where Can I Find a Car Loan If I Have Bad Credit

Have you been told that your credit isn't good enough for a car loan and that you'll have to wait until your credit gets better? You're probably wondering if there is somewhere that you can go to get a car loan without having to fool with a car dealership finance department. There are places that you can go to get approved and it's much quicker and simpler than you may think.

Online lending services that are legitimate and reputable will allow you to find a lender that will give you a bad credit car loan. There is no hocus-pocus involved and it's not anything that's too good to be true. There simply are more lenders than there are car dealers for most communities and finding the right lender is what you should do.

You wouldn't go to a plumber if you had an electrical problem, would you? Of course you wouldn't. So why would you rely on a dealership that is geared towards helping people with good credit, get you an auto loan? Until your credit gets repaired and improved over the next few years, you need to find a good lender that specializes in helping people with bad credit, not good credit.

When looking on the internet, make sure that the lending source that you choose has a secure website, so none of your personal information can be compromised. You also should look for a site that has a high approval rating. Some get 99% of their applicants approved for an auto loan.

When You Can't Get Approved For a Car Loan Locally

When you can't get approved for car loan locally, it can feel like there is just know where to turn. This is common, so don't worry about it. There are lenders that can help you to overcome this. Without smoke and mirrors, legitimate online car loan companies can help you and actually do a lot more for you then you may be thinking.

With thousands of lenders in the United States, it should be easy to fathom that there are bad credit car loan companies that can help just about anyone, get a real car loan with reasonable terms. Finding them, can be a challenge if you don't know where to look or where to go.

Let's clear something up, ok?

If you have had a bankruptcy, yes... you can get approved. However, all of your court proceedings relating to the bankruptcy need to be completed. The meeting of creditors and the final discharge or dismissal needs to be taken care of, prior to your applying for auto credit through these lending sources.

Also, if you have had a repossession within the last year... it needs to have been included as a part of a bankruptcy. If it was outside of a bankruptcy, and was within the last 12 months, then you will not qualify.

Your income needs to be a solid $1700.00 a month or more, per month. This is your GROSS income before taxes, including all wages, tips, etc.

It's easy to qualify and you if you're used to dealing with typical car lots and such, you'll be pleasantly surprised at the interest rates as well as, the payment terms that can be worked out for you.

What's the Credit Score Needed For a Car Loan

Credit scores can be broken down into a few categories:

Prime

Good

Sub-Prime

Bad

Poor

So what is the actual credit score needed to get a car loan? 

The answer isn't quite that simple. Regardless of your credit, you can get approved for a car. It's just a matter of using the right lender that fits your credit situation. You can get approved based on your income through special finance companies that offer their services online. There are real and legitimate lenders online that cater to helping people of all credit scores.

It depends on the lender...

There are lenders that specialize in working with people that have prime, good, sub-prime, bad and poor credit. Finding the right lender is all that you need to get approved. There is no direct answer to the minimum credit score for an auto loan. All lenders are different.

Fortunately, if you have bad credit, you can get approved for a new or used car and your payments are based on your monthly income. It's very simple to obtain a car loan if you have a low credit score and getting approved with lenders that operate online is much faster than using a local bank, credit union or car dealership.

Believe it or not, new cars are just as easy to get if you have bad credit. It just depends on the make, model and the amount financed. If you can get approved easily for a $18,000.00 used car, it's even easier to get approved for an $18,000.00 new car. The minimum credit score to get approved through special finance online is 480. 

What Kind of Car Can I Get For $300 a Month

The advertising ploys of car dealerships have changed people's interests from the total price of the car to monthly payments. More people now are concerned about what their monthly payment is than they are about the total price of the car. Car dealerships would prefer that you have this perspective and that your focus be on payments, rather than price. So, "What Kind of Car Can I Get for $300 a Month?" is a tough question, but there are good tips I can give you to help you to make a smart decision.

First, take your mind off of payments. The first thing you need to negotiate and think about when your car shopping is the price of the car. It may be that you would be able to get payments that are lower than $300 a month if you focused on the price rather than the monthly payments. If you walk into a dealership and tell them that I will my payments of $300 a month, you may be thinking that they will have to lower the price to get your payments that low but in actuality, it may be that they have to raise the price to make your payments $300. The after member the car dealerships are in the business of selling cars at as high the prices they can because they are in a very competitive business and every customer counts when it comes to the bottom line. So put your focus on the price of the car first, then the payments will fall in line and maybe better than you expect.

To get lower payments, not only do you need to have a good price on the car, you also need to have good interest rates which can affect your payment tremendously. You can save money by checking online and getting approved for a reputable lending service.

Generally speaking, you can get a $10,000 car for $300 a month, depending on what your interest rate is and how long the cars financed for.

What is the Minimum Credit Score For an Auto Loan

Auto loan credit scores are calculated by the major credit reporting agencies using a sophisticated "algorithim". This estimates, based on statistical probability, how likely you are to repay your loan and make timely payments.

Credit scores are broken down into a few categories...

720 and above is Prime Credit

680 to 719 is Good Credit

640 to 679 is Marginal Credit

600 to 639 is Sub-Prime Credit

580 to 599 is Poor Credit

525 to 579 is Bad Credit

480 to 524 is Very Bad Credit

These basic standards are used by most major lenders that car dealerships send applications to. You may have heard of a "prime lender". This would be a lender that only accepts applicants with credit scores of 720 and above.

Just as there are lenders that specialize in "prime credit applicants", there are lenders that specialize in giving auto loans to people that have Sub-Prime, Poor, Bad and Very Bad credit score ratings. If you fall within this category, then the following will assist you in obtaining an auto loan.

For people that have between "very bad credit" and "poor credit", there are loan companies that are tailored to fit your needs. They will take more into account than just your "credit score" and will take into consideration all of your accounts. Rental payment histories and other factors can be used to establish credit with these types of lenders.

To qualify, you must...

Have a credit score of 480 or higher

Be atleast 18 years of age

Have a regular income, such as a job, SSI or Disability income

Bankruptcy, whether chapter 7 or 13, must be discharged or dismissed

Have a valid Social Security Number/ Be a U.S. Citizen

Your income must exceed your monthly bills, including your car payment

Have an amount equalling your first payment as a down payment

What is the Best Place to Apply For a Car Loan When You Have Bad Credit

Many people that have bad credit wonder where they should apply for a car loan. It's a common question and a big one if you don't understand the world of secondary auto financing. This article will explain a few key points to help you to get pointed in the right direction.

First of all, although it may be tempting, the best place to apply for an auto loan is NOT at a buy here pay here car lot. Dealerships that offer "we finance anyone" deals, are a ticket to be taken to the cleaners. The fact is, many people fall into the trap of thinking that they have to resort to using this type of car finance when that is simply not the case.

Secondly, applying at a local car dealership may only yield mediocre results. It can take a while for the finance manager to sort out the best lender for your loan. With the way that dealerships can add percentage points to your loan, it's definitely not the least expensive place to use.

Third, your local bank may allow you auto financing, but usually local banks work strictly off of the loan value of the car. Sales tax and any amount over the loan value will usually be your responsibility to pay for upfront with a down payment. With the way that the banking industry has been tightened up lately, it may not be your best option to use a local bank.

Finally, online loan companies may be the best place for you to apply, if you want the widest selection of choices. Having bad credit, you'll do better by applying with loan companies that are specifically geared to working with people that have low credit scores. Some are better than others, so make your selection wisely.

We Finance Anyone - Buy Here Pay Here Car Lots For People With Bad Credit

Everyone has seen it. Those signs in front of buy here pay here car lots that say, "we finance anyone". If you have credit problems, you may have thought about using one of these types of car lots to get financed. Is it real financing or is it just a bad deal? Let's look into buy here pay here and how it work for, and against you.

There is absolutely no benefit to your credit score by using a buy here pay here car lot. In fact, there's not even a real loan involved. Sure, you get to drive the car, but only after a substantial down payment is paid and you'll get the title once all the payments are paid directly to the dealer.

If you're thinking that you may be able to get a car at a buy here pay here car lot without any money upfront, you're thinking wrong. These types of car lots charge down payments and will work you for as much cash as they can get out of you.

The interest rates that these types of places charge are as bad as pawn shops. Worse than credit cards. Try 25% or higher. Most of your monthly car payment will go to paying interest on top of profit. Now you know the story behind those "we finance anyone" signs.

A better alternative that you can look into is online auto loans through reputable lending services that help people that have bad credit. There are good companies that can provide you with auto financing, based on your monthly income.

Ways to Get a Car Loan With Bad Credit & No Money Down

If you have bad credit you have probably been to more than one car dealership that has turned you down. This is very common that people don't accept the opinion of the first car dealer and so they go looking for a second opinion much like many people do with doctors. We just don't like to hear the bad news and were looking for someone that will tell us what we want to hear.

Here are three ways that you can get approved for a bad credit car loan without having to put any money down.

1) If you have a local bank or credit union that you have your checking account with, you may be surprised to find that they will actually offer you a car loans so long as, you have a reasonable average balance and don't ever have any overdrafts. You will have to have a stable place of residence that you have probably been added for at least two or three years, you will need to have been eager job for a considerable amount of time, and the price of the car needs to be within certain guidelines. These guidelines will relate to the loan amount. The loan amount versus the loan value. Getting a car loan with no money down using a local bank or credit union, means that you will have to find a deal on a car that is priced at or near loan value.

2) Buy here pay here car lots are not the cheapest place to buy a car, however financing is very easy. Some places do not even have a credit check and don't really even have any requirements whatsoever, other than having a down payment. The only way to avoid a down payment when buying a car at a car lot that finances their own cars, is to have a trade-in that is either paid off or has considerable equity. This is not the best option for you if you want to save money and get a good deal on a car, however, I mentioned this information in this article because buy here pay here car lots are commonly considered as an option when you have credit problems and need a car.

3) Online loan companies that are legitimate, can offer you finance saying with no money down and guidelines and lending standards are quite a bit different from those that you will find when using a local bank. These types of lenders work only with people that have bad credit, and are in business just to help people out there that have bad credit and can't get financed at a car dealership. This is by far the easiest way to get a fast approval, get lower monthly car payments, and a better interest rates. One of the great things about using a service like this, is that you can pick and choose what model and make of car that you want, without being limited to what just one car dealership has to offer.it is much easier to get a no money down car loan when you are able to shop around and find a good feel on a car. When you can do this you can find good deals and local classified newspapers, bargain hunters, and even on on line auction sites.

Warning About Buy Here, Pay Here Car Lots

Before you turn over your hard earned cash at a buy here pay here car lot, there are some things that you should know. This information will save you a lot of money, both right now and in the future.

You're paying too much.

There's no bank that's regulating how much the car lot is charging you for the car. In many cases, buying from a buy-here-pay-here car lot is resulting in you paying thousands more for a car than it could ever possibly be sold for at a regular car dealership. On top of that, you're paying thousands more in finance charges than you have to.

You don't have to use a buy here pay here car lot!

You absolutely don't. There are finance companies on the internet that specialize in helping people with horrible credit get into cars without even needing a down payment. You can save thousands of dollars on both the price of a car, your interest rate and your monthly payments if you just know what to do.

Regardless of your credit history... If you've had judgments, repossessions, bankruptcy or multiple bankruptcies, medical collections, tax liens, whatever. Who cares?

You can get financed and approved... for more car with lower payments. Lower payments are the result of a lower interest rate.

You know what the best thing about getting approved online is? You don't necessarily have to buy from a car dealership. Having an approval letter from an online loan company means that you can go car shopping anywhere you want, including shopping for cars in your local newspaper for sale by private owner, which saves you from having to pay sales tax!

Want Car Payments Under $100, $200 Or $300 a Month If You Have Bad Credit You Better Listen Up!

If you go into a dealership and the salesman or sales manager "works you on payments", you'll never know what you're really paying until after it's said and done. Many people try to buy cars based on monthly payments. $100, $200 or $300 dollar payments can be a $5,000, $10,000 or more car. If you really want to save money, you need to know what's going on when you're sitting down at the negotiating table at a car lot.

Getting a customer hooked on the monthly payment amount is very, very dangerous.

When you're presented with the first "numbers" that the dealer gives you, it will have an inflated down payment and monthly payment. When you initially object to the amount of the monthly payment, you're falling into the trap. The dealer WANTS you to get caught up in trying to get a lower payment, because as long as your not focused on the price and your trade-in amount, you're toast.

When you're focused on payments, the interest rate, dealer add-on fees, the length of time that the vehicle is finance for and the price of the car... all leave the picture.

You see, if a dealer presents you with a $350 a month payment, only to "reduce" it for you to $280 to "earn your business", has he really done anything for you? It seems like a BIG discount, right? What if instead of paying $350 for 60 months, the loan is changed to paying $280 for 72 months? Have you really saved any money with your "big discount"? I'll let you do the math.

There's more to negotiating a car purchase than just your car payment. Obviously, everyone has a budget to stay within, but the payments are the last thing that you should negotiate if you want a good deal.

Used Car Loans For People With Bad Credit

Understanding what options that you have in regards to financing makes a big difference when you are looking for a bad credit, used car loan. A lot of folks that have credit problems don't understand what they need to do or where they can go in order to get approved. Even more so, to get approved for used car loan with reasonable interest rates and without the hassles of having to go from car lot to car lot.

It's not hard to get confused when you have bad credit because there are so many different offers with so many different conditions that it's hard to make any sense out of any of it. It's like you have to have a PhD in reading fine print to understand it.

For example, what really confuses some people is that payments are higher for older cars than they are for newer cars, that are the same price. The payments for a vehicle that is $10,000 and one year old is less than, the vehicle of the same price that is three years old. Older vehicles can be financed for as long so the payments are higher. These types of things are ways that dealers can craft advertising to make things look different than they really are. That's why when you see a dealer advertising a particular payment for a particular vehicle, you know that there is going to be more to the story.

Getting approved for bad credit used car loan, is best accomplished by using an online option provided by some lending services. You will find that obtaining approval when you initiate the financing aspect of the purchase makes for a much more enjoyable car buying experience. There are some good options available to you through a few good websites.

Used Car Loans For People With Bad Credit - Where is the Best Place to Get Approved

If you are experiencing the negative changes that have affected people in the United States recently, in regards to the economic condition, you most likely have one of the symptoms. The major symptom that people have right now that have been experiencing these changes, is a declining credit score. More and more people are having a hard time just making their monthly payments, let alone being able to cover unexpected financial needs. If this is you, and you have bad credit now and need auto financing, there are some things that you need to know.

The best place to get approved for used car loan if you have bad credit, is not necessarily at your local dealership. Certainly, you should avoid buy here pay here dealers at all costs. Those types of establishments are not going to be conducive to a positive financial outlook for you. That is one of the most expensive ways of buying a vehicle.

By far, the best place to get approved is on the Internet. The reason for this is very simple and should be very easy to understand. There are sources online that can provide you with access to multiple lenders that you can be paired with based upon your particular credit predicament. Having access to a database of lenders rather than just one, significantly increases the likelihood of you not only getting approved, but also of you getting a much better interest rate with no money down. If you've had a hard time getting approved locally, the Internet is definitely something that you should explore.

Used Car Loans For College Students

Getting a used car loan when you are a college student can be a little bit frustrating because you may not have much of a credit history established and also, more than likely do not have a significant monthly income. There is assistance for you and there are lenders that are more than willing to help you out. If you don't have money for a down payment, that's not that big of a deal with these types of lenders.

Doesn't it make a lot of sense but a car dealership won't tell you that these financing options are available to you on the Internet?

Car dealerships do not like the Internet because they don't like people being able to find out exactly what they pay for cars. They also don't like people attending financing outside of the dealership because they make money on interest rates. They markup interest rates just like they mark up the price of the car. That is where the term back end profit comes from, at car dealerships.

If you are a college student, please do not go to a buy here pay here car dealer to get a car. You will pay so much higher of an interest-rate and so much higher the price for the vehicle to begin with. Dealerships that offer in-house financing are not a good option. You will get less car for more money at those types of establishments.

The easiest way to get approved for car if you are a student is to apply online. There are a couple good sources that you can use.

Truck Financing With Bad Credit

If you need truck financing... bad credit doesn't have to stand in your way. These days, it's easier than ever to get truck financing even with horrible credit.

Part of the reason it's so much easier is because trucks hold their value so well. It's commonly known that some trucks can be bought, driven for a year and then sold again for more than what it cost to buy in the first place.

You can't say that about cars.

Trucks are better collateral for loan companies because of that very reason.

If you need to get financing and you have bad credit, then you are fortunate in that there are new loan companies now that will approve you right on the internet. It used to be that you had to go in person, sit in front of a loan officer and go through a credit interview. This was especially the case when you had bad credit.

Now, with so many people suffering from credit problems due to the economy, it's commonplace now to just get a loan right over the internet.

When you use one of these loan sites, you'll have to be able to verify all of the information that you provide.

Fortunately, you don't have to provide hardly any information to know if there is a lender that will work with you, based on your income level.

Getting the financing part of the truck buying out of the way... helps you to spend your time finding the right truck, rather than having to worry about whether or not the financing is going to go through.

Tips - How to Buy a Car With Bad Credit to Help You Avoid Being Ripped Off at the Car Dealership

It can seem overwhelming when you get into a car dealership, are surrounded by salesmen and sales managers that are trained to do one thing... extract money from your pocket.

That's right.

There's an old saying in the car business. "A salesman's job is to extract money from the customers pocket without resorting to physical violence." That's a true statement and some dealers will stop at nothing to get you to agree to the numbers that they want you to, and sign on the dotted line.

Here are some tips that will help you along your way to avoid getting ripped off at a car lot...

1) Keep your priorities straight. If you have bad credit, the first priority is going to be to get the financing secured. If you don't, you'll choose a vehicle that may not be within your budget, which can leave you paying more than you would have, based on emotional buying. Keep your emotions out of the picture, arrange your financing (there's good help online) and then, pick out a vehicle based on what you can truly afford.

2) Don't fall for finance products. Dealers can make more in the finance department than they do on the actual sale price of the car. This is a result of inflating your interest rate and selling you extended auto warranties, gap insurance and credit life insurance. While an extended service contract has it's place, you can get a much better price on an extended warranty by buying direct. Avoid financial products that are sold in dealerships as they always have a hefty profit built into them for the dealer. You're better off obtaining those on your own.

3) Negotiate, negotiate, negotiate. Don't give up. The dealer will try to wear you down and get you to where you feel like you can't get any better of a price on the vehicle that you want. It's a bluffing game. Frequently, the dealer has plenty of room to discount the vehicle, but is doing his best to "hold gross". Holding gross is car business lingo for holding on to the gross profit. Not giving up the profit on the sale price is what pays the salesman's commission. You can always renegotiate the price and don't give in until you're satisfied.

Special Finance - Car Loans For Bad Credit With No Money Down

So you've been to a dealership or two, had your credit pulled and you're told that you've got credit problems. This has turned your quest for a car into a quest for a car loan. It's not a good position to be in and greatly weakens your ability to negotiate price and choose the car that you really want. It's common for dealers to tell you that you can only get approved on certain cars. This is because they're limiting you to the cars that they can make the most money on, based on what their loan companies will lend.

Car loans for people with bad credit, known as special finance, are available through other sources and you don't have to go through a dealership finance department. That's the part that they probably left out in the conversation. Dealers want you to think that they are the final authority when it comes to car loans...

Well, they aren't.

The fact is that dealerships simply process applications and forward them to lenders. They are not a lender themselves, unless you're talking about buy here pay here places and everyone knows those aren't the best places to buy a car.

When you get the dealership out of the way and deal directly with lenders, you're better able to deal with more lenders and compare offers. There are sources online that allow you to do just that. You can compare offers from multiple companies. Afterall, different lenders have different lending and credit standards and you're easily approved if you just find a lender that specializes in helping people get special finance car loans with bad credit.

Special Finance - Buying a Car With Bad Credit and No Money Down

Typically, when you go into a car dealership with bad credit, you end up really confused as to what you can and can't buy. Dealers will tell you that based on your credit history, you've only got a few options. This usually includes an older car with higher miles or a low priced entry level newer model. It can get really confusing when they start talking about interest rates and it seems that the interest rate is different on different models. To add to the confusion, down payments seem to be a number that constantly changes. You may be told that you have to put down $1500.00 on one vehicle and only $1000.00 on another. There just seems that no clear answer is available.

Well, the fact is that car loans can be really complicated when it comes to car dealers getting you financed. Dealerships have to figure how much money one of their loan companies will lend for a particular vehicle based on loan value. Then, there's their main interest, which is making a profit. If a lender won't lend enough money on the car for the dealership to make a good profit, they'll ask you for a down payment to make up for the difference. It's not that you actually have to have money down to buy a car, it's that the dealer needs it to make money.

You can avoid dealer financing altogether and get a car loan on your own with no money down. You may think that you can't, but you certainly can. All a dealership is, is a middleman for your car loan. When you get them out of the way, there are more lenders and opportunities available for you to get special finance deals.

Special Finance - Bad Credit Car Financing - No Money Down

If you don't have the cash in the bank and need a car with bad credit, you're going to need special financing. If you have bad credit, then you certainly will need to consider the source of your loan, if you want a good deal. Avoiding high interest rates and down payments is of utmost importance. While people that have good credit, can virtually get a loan anywhere, people with credit problems don't have so many options. It's ok, though. There are ways and places to get auto financing with bad credit. It's easier than you probably think as it's just a matter of finding the right lender.

Online Special Finance Loan Companies...

There are websites that can help you to get auto financing without the restrictions and conditions that many car dealerships impose. Just because you have bad credit, doesn't mean that you can't get a reasonable car loan with decent interest rates. Most importantly, you want to make sure that your payments are affordable. Generally, you don't want your car payment to be more than 20% of your gross monthly income. This is the guideline used by many finance companies.

When you decide that you want to arrange your auto loan online, you have more choices. You no longer have to be limited to a single dealers inventory. You can shop for your car anywhere that you choose. This is very liberating if you've not experienced this since developing credit issues. There simply is no better feeling than being able to walk into a car dealership and make an offer as if you're paying cash. Being able to get your loan with no money down is even better!

Slow Credit Car Loans - Getting Approved For Auto Financing Online

When you have been refused a car loan because of the mistakes of your past, it can leave you wondering how you can get approved for auto financing with slow credit. Dealerships just don't tell the whole story when it comes to car loans.

Part of the story that they won't tell you is that there are options available for just about everyone when it comes to getting approved for auto financing. Some of the best options for people that have slow credit are available on the Internet.

A common scenario that a lot of people that have slow credit find themselves in, is picking out the car before they have found out if they will qualify for a car loan. This adds insult to injury.

The following tips will arm you with information you can use to get a better deal.

Ask the dealer if there is a three month or 12 month warranty that is included with the vehicle. Sometimes dealerships can include these at no additional charge, although they are actually paid for by the dealer and subtracted from his profit.

When you negotiate the price, be passive about it. Don't act desperate to get approved as the dealer will know at that point that the cards are in his favor. The less interested you act about getting the car, the lower the price will drop to entice you. It's simple, but it really works.

Keep in mind that dealerships are not the ultimate authority when it comes to car loans. Lenders are. In fact, by working with lending sources directly, you stand a much better chance of getting approved, and with terms that are much more advantageous to your financial situation.

Simple Auto Loans For People With Horrible Credit Histories

Having horrible credit or a very low credit score isn't the end of the world. There are all kinds of offers on the internet trying to convince you that there is some secret to improving your credit score.

There isn't.

It's simply a matter of paying your bills on time. If you can't pay the collections or charged off accounts on your credit report, they will disappear with time.

If you have what you consider to be horrible credit and need a car loan, you can do that while you're waiting for your credit score to improve.

That in itself should be a relief.

You can get approved. Dealerships and local banks may turn you down, that's true. What you need to do if you have a horribly low credit score is to use a lender that focuses on helping people in your situation.

You don't have to have a down payment unless the price of the car is unreasonably high. If it's too high, you wouldn't want to buy it anyway, would you?

Of course, not.

So getting a car loan with no down payment, even with terrible credit is very doable as car loans are secured loans. They have collateral, which makes all of the difference in the world.

You know how much of a payment that you can afford. Your monthly payments will be based upon your monthly income and this way, you won't end up with a payment that you can't afford.

How cool is that?

Refused Car Credit Learn About Auto Loans For Bad Credit

Just because you have been refused car credit, doesn't mean you can't get an auto loan with a reasonable interest rate and payments that you can afford, elsewhere. In this new internet age and with lenders knowing that you've got to have transportation, it's easier than ever to get approved with the right loan company. Don't be discouraged by what car dealers tell you about your credit. They aren't the final authority, anyway.

The simple fact is that car dealers don't really have much to do with helping you get approved. They're just a middle man. Today's lenders prefer to deal with customers directly when there is poor credit involved.

Car dealers will come back and tell you that you'll need a down payment, or that your interest rate will be really high and getting you approved with payments that you can afford will be really difficult. Don't listen to them. They are not the loan company. Lenders actually prefer that you apply directly and you'll get approved so much easier when you do so.

You've got to have a car to get to work, got to have one to get to the grocery store, go out on the weekends and just get around to do what it is that you do on a daily basis. Lenders know this and are adapting to the credit change in America. With the economy hurting so many hard working people, car loans are easier and easier to get if you apply directly for your loan and bypass the middle man, known as the dealership. If you've been refused car credit this is your best option.

Refused Car Credit by a Crazy Car Dealer Vehicle Loans For Poor Credit!

Have you been denied car credit at a car dealership? If so, it may seem that getting a vehicle loan you have poor credit can be very difficult. You may think that getting a brand-new car is an impossibility. You may also think that if you do get a decent loan for car, you're going to have to come out of pocket for a big down payment and probably have to pay a big interest rate.

Nobody that has poor credit wants to have high car payments!

Fortunately, there are places you can go to apply for financing for a car without the need for a down payment and also without having to pay outrageous interest rates.

Having poor credit, does not mean that you cannot get a vehicle loan. It just means that you have to use lenders that cater to helping people that are in your situation, obtain vehicle financing. Many people that have poor credit simply do not realize that these types of sources exist.

That's one of the great things about the Internet, in that just about every type of business is now accessible online. You can buy clothes, buy a new laptop and get a car loan approved within an hour. Everything just seems to happen so fast.

Vehicle loans for people that have poor credit are available through a couple good online sources that qualify you for a car payment based upon your monthly income. This is great, because once you get your approval you can shop for a car without having to be concerned about whether or not you will be able to qualify for it.