I can tell you that the most common mistake that people make when they have bad credit is going from three dealership to another trying to get approved. If that's what you're doing, then stop now. What you're looking for isn't going to be found through the doors of a automobile dealership. automobile dealers are no different than your local furniture store that sends your credit application to a lender for a furniture loan. they're middlemen with something to sell. If you've lovely credit, you should still look at other options outside of a automobile dealership.
Looking around the net, there's a lot of conflicting information about special financing for bad credit. It's hard to know exactly what options that you've. Some web-sites tell you that you'll have to put currency down & pay a higher interest rate. I beg to differ. I'm here to tell you that most of the web-sites on the net are run by people that have no experience in the automobile business or working in second chance finance.
Dealers make currency on loans. Most people don't know that. they mark up interest rates like the do on the sale price of the automobile. If you're approved at 9%, which is reasonable for bad credit automobile finance, then you'll most likely be told a higher rate. They'll try to get you to agree to pay 12% or more. The difference in the interest rate equates to profit for the dealer also a commission for the finance manager.
Your best bet is to bypass dealer financing & get your loan approved online. You can compare offers for special finance automobile loans online & select the best option for you, without having to commit to anything or have someone trying to talk you in to anything.
