Why you should let a dealer handle your bad credit car loan financing
by Steve Cypher on Friday, May 30th, 2008There are innumerable web sites out there that will tell you the best way to approach a car purchase is to secure financing before you visit the dealership. With conventional financing, this might be a good idea. With bad credit car loans, it can often result in an unneeded credit denial.
It’s not just a river in Egypt.
Denial. It’s the last word that anyone shopping for a car wants to hear. Especially for bad credit car customers, the more applications you submit, the lower your credit score can go based on the number of inquiries per application. Since a “turn down” from a lender is the last thing most customers want, you need to know that there is away to avoid many of these denials. One of the ways that can make a difference is in how your application is submitted to lenders.
The difference a dealer submission can make
Here at Auto Credit Express, we know that when you submit an application directly to the lender, it’s a very simple process. You submit the application, the lender does a quick study and, based upon your FICO score (credit score) and the information in your credit report, the lender makes a decision. The lender then sends you an approval or a denial. The entire process is, pretty much, cut and dried. If your application is turned down, there is no appeal process.
The first part of the process is pretty much the same when you visit a car dealer. You fill out the application, the dealer submits it to a lender or lenders, depending on the situation, and the lender informs the dealer of the credit decision. Even though you may not realize it, something different has already happened. Once you filled out the application, you were “interviewed” by the special finance manager. This person has probably had hundreds of conversations with bad credit customers. Based on experience, this manager knows which banks to send your application to. Not only does the “special fi manager” know where to submit it, he or she probably has a relationship with most of the subprime banks that the dealership uses. If the bank turns down the loan and the manager sees some special circumstances in your background based on the interview, the person who made the credit decision at the bank will receive a call from the manager to “rehash” (go over) the deal. In many cases, this conversation will result in an approval or a conditional approval based on more money down or, possibly, a modification in the type of vehicle that will be approved.
The Bottom Line
At Auto Credit Express, we have helped thousands of car buyers with bad credit drive a new or low-mileage quality used car. Our nationwide network of affiliated dealers specializes in bad credit car loans – eliminating the need to spend hours trying to find one. Our web site, www.autocreditexpress.com, has calculators and a resource page to educate you about the buying process. When you’re ready, our secure auto loan application can be filled out in the comfort and security of your home. Remember, here at Auto Credit Express, we want you “on the road” to better credit!
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