Used Car Dealers and Bad Credit
by Dave LaLonde on Thursday, November 1st, 2007If you have bad credit chances are that when it comes time to buy a new car you will start first start by visiting used car dealers, either online or at the lot. I’m not sure why this is the tendency. The fact is that if you have bad credit you are more likely to get approved at a new car dealer that specializes in bad credit financing, than you are at a used car dealer.
The main reason for this is that most of the national sub prime auto lenders only partner with new car dealers or very large independent used car dealers. So if you visit a franchised car dealer more often than not you will have more lenders competing for your auto loan, and as the saying goes, when lenders compete you win.Why do most lenders only do business with franchised dealers? Franchised dealers not only have passed an rigorous approval process by one of the OEM’s, each month they have to maintain certain levels of working capital, that is to say, money in the bank. Used car dealers are no under such scrutiny. In addition, franchise car dealers have repair facilities on site, and most perform standard maintenance on their used cars before they are offered for sale to the public.
Since not every franchised dealer is able to accommodate people with bad credit, it is important that you find on that does. Bad credit auto loan services like Auto Credit Express® can help you find a franchised dealer in your area that has the lenders in place to accommodate a wide variety of credit situations. Most lenders specialize in a small segment of the lending market, for example:
First Time Buyer and No Credit Car Loans
Bankruptcy Auto Loans
No Money Down Auto Loans
Low Income Car Loans
To summarize, if you have bad credit and need an auto loan to buy a car, chances are that you will get a better car and a better loan if you visit a franchised car dealer that specializes in helping people with bad credit, than you will get from a local used car dealer.
Hello, I would like for someone to contact me about a second chance loan. I would like more information.
Lisa,
By filling out the loan application at http://www.autocreditexpress.com, you can start the process. Once you have completed this, you can contact our customer service professionals using our toll-free number and they would be glad to answer any questions that you may have.
i need a car for about $5000….i am a school teacher..but have bad credit due to student loans..i do have a job,and can submit the two current paystubs…9143164871…kevin
I need a car, i have bad credit,i retired from chyrsler in 2005,i have $3000.00 to put down ,my monthly income is about 3100.00 i have a house foreclosure on my credit report, can you help me , i don`t have a cosigner. 313 838-8970
Lynda,
I have forwarded this information to our customer service department and a representative should be in contact with you shortly.
I need a car, I have bad credit and my income may be problem because I only make about $1000 a month.
Stacy,
You are correct in assuming that there will be a problem with bad credit lenders due to your income level. For the most part, bad credit lenders require a monthly income in the $1,800 range - with a few stretching to $1,500 if you have a stronger than normal credit history.
At this point in time, you might want to consider a “buy here pay here” or “tote the note” car lot that does its own in-house financing.
I am looking to buy a car that will fit me and my 4 kids. I only have $1400 to spend. I am a single mom with no income and a student, can you help me?
Sherri,
We don’t do cash sales, but you might want to check one of the local car auctions to stretch your dollars. Here is a link to the Volunteers of America web site:
http://www.voaautoauction.org/
I need a car, i have bad credit,,i have $1500.00 to put down ,my monthly income is about 3400.00 i have a 2005 vehicle with 112K, some mechanical problems and a 19000 balance i want to get out of this vehicle but amount owed is to high, i have been paying 558 for two years. I don’t have a problem making the payments I need something with less miles can you help me , i don`t have a cosigner. .
Becky,
Even if you had outstanding credit, the only way you could get out from underneath thousands of dollars in negative equity would be to buy a second vehicle and let the other one get repossessed - and even in that case, the lender could still come after you for the deficiency balance.
If your credit is bad, there is very little that you can do other than repair the mechanical problems and continue paying on the loan until you have erased the negative equity - at which point you can trade it in on a different vehicle.