Often, people with bad credit believe that they cannot get an auto loan to buy a new car. Many believe that they have to buy a cheap used car if they have bad credit. The fact is, if you have bad credit, it is often easier to obtain an auto loan on a brand new car. One the reasons for this is that bad credit auto loan lenders offer better rates and terms on new cars. Another reason is that new car manufactures often offer consumers rebates in lieu of low interest rate financing. Rebates help if you are tying to get an auto loan with no money down.

There are many new cars under $20,000. Take a look at the following comparison between getting an auto loan for a new car under $20,000 and a similarly priced used car through the same lender: (Read More…)