Do We Finance Anyone Car Lots Really Offer Real Car Loans For People With Bad Credit

Dealerships that promise to finance cars for people with bad credit without credit checks commonly use the slogan, "we finance". There are some things that you should know before you go spending your money at one of these car lots and some of them may surprise you.

One thing that will surprise you is that "we finance" isn't really giving "real finance" to anyone. Buy here pay here car lots simply keep the title to the automobile until you've paid the full price plus interest. It's not actual auto financing that will help your credit score.

One thing that won't necessarily hurt your credit score, but will sure hurt your wallet is the down payments that these places want. In many cases, you could buy the same car on the street for just a little more than the amount that you have to put down at a buy here pay here car lot. That's just taking advantage of someone's inability to get real financing, or so they think.

That kind of taking advantage of people has landed many buy here pay here dealers in court. Sadly, because of the fine print in the sales contracts, there is little that can be done. If you do end up using one of these types of car lots, be cautious and take care to read the contract in full before signing.

One option that people have that have bad credit, is auto financing via the internet. There are some companies that provide financing for folks that have credit problems and help them to get real car loans. By getting a real car loan, you're able to rebuild your credit rating. With good lending services that will work with you based on your monthly income, you're able to get more car for your car payment, too.

Do it Yourself, No Money Down - Bad Credit Auto Financing For Cars, Trucks Or Motorcycles

A rumor that has been spread since the 1960's is that whatever a car dealer gets for a down payment is nothing more than profit. This rumor is in part, true.

An Example

The following example applies whether you're buying a car, truck or motorcycle with bad credit.

Let's say that you want to purchase a used car that has a selling price of $15000.00 and the dealer is telling you that because of your bad credit history, you have to put down a 10% down payment of $1500.00. In cases like this, it is very likely that the loan company approving you will only "advance" $13,500.00 on the vehicle in question and this is generally based on loan value. Typically, the dealer will have paid somewhere around loan value for the car and if they sell it at this price, then they aren't making any profit. So in this common example, requesting that you make a cash down payment of $1500.00 is in fact, $1500.00 of dealer profit and nothing more.

Dealers do have to make money and $1500.00 is a reasonable profit. It's disheartening however, to fork over a couple weeks worth of income just to make that happen, though.

How to Get A Car with No Money Down

If you have bad credit and need auto financing, and you don't want to put any money down, there is a solution. Now, hear me out on this, because this information can really benefit you and this information comes from 20 years of experience working in car dealership finance departments...

Buying a car from a private owner. This reduces the amount financed by around 7% or whatever your local tax rates are. This reduces the amount needed to buy the car and less money that has to be borrowed. There are also no dealer "doc" fee or dealer "prep" fee, which also reduces the amount needed to be loaned by $99 to $599 typically charged by car dealerships. Reducing the amount needed is good!

Negotiating with a private seller on the sale price is MUCH easier than negotiating with people that do it for a living (car dealers). If the seller doesn't have a large amount owed to the bank and is frustrated with taking time to show the car, you may be very surprised to find some really great prices on cars for sale by owner. This can be in your local newspaper, bargain paper or online classified.

"Do-It-Yourself" auto financing. This is the most important part. Bad credit doesn't mean that you can't get a car loan from a loan company outside of a car dealership. If you deal with a loan company directly, you're only dealing with them on the finance side of the purchase, not the price of the car. This enables you to qualify (get approved) for a specific dollar amount that you can base your car shopping on. There are online resources to do this from the comfort and privacy of your home.

Summary

Buying a car from a private owner reduces the amount you need to borrow significantly and if you shop a little, you'll have no need for a down payment, whatsoever. Also, this involves arranging your own financing which is very doable if you have bad credit and know where to go.

Dealer Financing With Bad Credit

You're wondering if there is a dealership that will approve you with your credit score. You've got credit problems and it's getting really frustrating trying to get approved. The vehicle that you really want you're told, isn't going to be an option because you've got bad credit. You wish you knew what you could do and even if it's possible to get approved for dealer financing with bad credit.

I'm not psychic. I just know what it feels like to be in your shoes. I've been there and I've got bad news.

I found myself in a position of having bad credit. With years of experience in the car business, I knew that dealer financing wasn't my best option. Buy here pay here car lots charge outrageous amounts of money for cars, interest rates and down payments. I knew this wasn't even something that I would consider.

I have worked in secondary lending, or what most people call bad credit finance. I know the in's and out's of it. This helped me to know a way around dealer financing that helped me to easily get approved.

You see, it's easier to get approved for financing if you do not go through a car dealership. You can get approved through a special finance company that specializes in working with people just like you and I. They base your payments on your monthly income, so you don't get in over your head. These companies on the internet have a database of lenders. As different lenders have different lending standards, you'll find a lender that will work with you very quickly when you look online.

Car Lots That Promise We Finance Anyone With Bad Credit

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.

Car Lots - No Money Down and No Credit Check

The good news is... There are legitimate opportunities available for you if you have bad credit and need a car loan without a down payment. While there are many scams online, you can find some real opportunities with lending networks that can help you get approved even with past repossessions, bankruptcies and foreclosures.

The bad news is... The only way that you're going to find car lots that offer no money down financing with no credit check, are going to be in your dreams. That's a very straightforward way of saying it, but it is the truth.

For whatever reason that you may be looking for car lots that offer no money down, no credit check financing, is most likely because you were not aware of the opportunities that are available to you through legitimate online lending sources. There are some reputable companies that can help you and offer you an approval that you might not otherwise be able to obtain locally.

The reason that there are no car lots that allow you to take car without any money invested or any credit history check is simply because that would open up the opportunity for fraud. That would create a situation where someone could come in with just a driver's license and walk away with a car. There are no buy here pay here car dealerships or even rental car companies that would allow you to take one of their vehicles without having some type of recourse to collect if you do not pay.

Car Loans For People With Poor Credit - Getting Approved For Online Financing

If you have poor credit, you probably been through the typical scenario of driving from one car lot to the next trying to get an approval for a car loan.

This can be a very aggravating experience.

It can also leave you in the dark wondering what it exactly is on your credit report that is holding you back. This is because a lot of dealerships are not upfront with you and explain the details to you of exactly why you could not get approved. This can also be the reason why they did not explain to you why you have to pay such a high interest rate or are required to have such a significant down payment in order to secure financing.

Car loans for people that have poor credit are available online through numerous sources. Legitimate sources for bad credit auto financing for people that have poor credit can provide you with much better options. There are good companies that have a database of lenders that can immediately match you with a loan company that has the guidelines to allow you and approval. While you may not get approved for a $40,000 automobile, the reasonably priced vehicle is well within reach if you meet certain basic guidelines.

You have to make a certain minimum income per month, you have to be a US citizen and there are details about bankruptcies and repossessions that you must be aware of. It is however, much more easy to get approved online that it is going through the typical scenario of going from one car lot to the next.

Car Loans For People With Horrible Credit

Okay, so what exactly is it that makes your credit horrible? Is it a repossession? A bankruptcy? A foreclosure? Do you have multiple late payments?

Maybe you have a credit card charged off or two?

Three or four?

Chances are if you have been to a car dealership, you have been turned down and told that you are going to be refused car credit if you do not improve your credit score. Sometimes car dealerships will tell people that they can get approved if and only if, they have a significant down payment that equals 20% or more of the sale price of the car. If you have a horrible credit, you have probably been told these things.

There is good and bad news...

The bad news is that you are simply not going to get approved for an expensive vehicle. So, if you have an idea of a brand-new Lincoln navigator in your mind, then that's just not going to happen. If you would like a decent vehicle that will get you where you are going and be dependable, then that is very doable. With some online lenders, it's actually possible to qualify for a brand-new vehicle. It all depends on how much monthly income you have and if any bankruptcy that you have had, is discharged. Any bankruptcy that you have had must be either discharged or dismissed in order for you to obtain a car loan.

My Recommendation: The fastest and easiest way that you can go about getting a car loan if you have horrible credit is to simply go online and use a legitimate car loan website.