A few avenues are available when considering your bad credit auto financing needs. There’s aren’t many things more financially tiring than having bad credit, which is why groups such as repair.credit look to provide some useful options to people that are looking to make their credit better. If you go with a bank or credit union loan you may be approved prior to ever looking at vehicles. Banks more often than not tend to offer lower interest rates while credit unions are usually lower still. If you are not sure where you stand on the credit union vs bank debate then it might be wise to research further. Just know finding one that deals with auto financing in your situation may take some time and effort.
Heading to the internet for bad credit auto financing has become very trendy. Lending institutions offer online lending that offers longer pay back periods and some of the best interest rates. In just a matter of days you can have a check available. Being preapproved and having this check it permits you to walk into any showroom as a private-party customer.
Since you’re here, I have to assume you have less then perfect credit or maybe someone you know does. Well if you own your house, there are a few different options to consider for help with bad credit auto financing. Home equity loans are one. You’ll end up with a very low interest rate if you go this route, meaning you will actually pay less in the long run for the car and the payments are tax deductible. Twice as good, Right. Now buy no means am I saying to put yourself in a situation to lose your house because you didn’t take a bad credit auto financing loan.
If you’re NOT like me and can still find someone in the family to help you out this may be an option. Pleading for enough cash to pay for the car in full certainly isn’t going to happen is it, unless you want a clunker? But can you find a member of your family to co-sign your loan, never know till you ask. OK so you find someone to co-sign, now it is very important that everyone involved with this auto loan reads and understands his/her responsibilities should troubles come up down the road.
To guarantee you’re getting the best bad credit auto financing, entering the dealership with a preapproved loan, will put the stress on the dealer to beat the interest rates and terms of the loan you walked in with. (Yes stick your chest out.) You’re in control now.
The best thing to bear in mind when searching for bad credit auto financing is that interest rates vary. Used cars as a whole have a higher interest rate than a new car and the loan on a new car can be financed over a longer period of time.
If you’re unable to get auto financing at a bank or credit union do to your situation there’s still hope. Online companies get it done everyday. Just make sure they’ve been around awhile, has a good reputation with the Better Business Bureau, and good testimonials from customers and you should be in good hands.