Consumer Car Buying Advice Blog

There are times when a no credit auto sales dealer is the only answer but if you are serious about credit repair you might try applying for a bad credit auto loan first

Your credit repair

If you’re sure you have bad credit you may be wondering if you have any other choice than a no credit auto sales dealer. We’ve realize you might be thinking this because at Auto Credit Express we’ve been at the retail level helping bad credit customers to reestablish their car credit for more than two decades.

A perfect example of our commitment to bad credit car buyers is our web site featuring a bad credit auto loan application – something we hit upon after hearing about the embarrassment and disappointment that customers with bad credit usually face at dealerships that don’t offer bad credit car loans.

But if it’s fairly easy to qualify at one of the many no credit auto sales dealers, why wouldn’t you want to go this route instead of going through the hassle of a credit check with a bad credit lender?

No credit auto sales

The loans offered at no credit auto sales dealers don’t require a check of your credit history in order to be approved. Other names for this type of loan are no credit check, buy here pay here and tote the note auto loans.

Since the lender doesn’t care what’s on your credit report, even if most of it is really bad, you are automatically approved – not such a bad idea, right?

How loans at these dealers work

While it might sound like a great idea, there are a number of things to consider before taking out one of these loans:

•    The down payment will be high. In order to stay in business, no credit auto sales dealers will require a down payment that is probably equal to what the wholesale value of the car (to cover any losses in case the borrower skips town before the first payment is made).
•    The interest rate will be high. Interest rates on these types of bad credit car loans usually start at 25% and go up from there.
•    Vehicles available will be older used cars and you may very well end up paying for expensive repair costs during the loan in addition to your monthly payment.
•    The car will probably be equipped with a GPS device (to make locating it for repossession easier) as well as an electronic immobilizer that will deactivate the ignition if you miss a payment.
•    If you fail to make your weekly payments on time (most programs require that you pay weekly), the car will be repossessed and you will still be required to make up the difference between what you owe on the contract and what the car is worth at auction.
•    Even if you make every payment on time and pay off the loan, this payment history is usually not reported to the credit bureaus because the dealer is not required to do this.

An alternative

Before you consider buying a vehicle at a no credit auto sales dealer, why not give us a shot at your business?

At Auto Credit Express, we specialize in placing customers with bad credit with dealers that can help them. These dealers are knowledgeable and work with a broad spectrum of lenders to ensure you have your best chance at getting approved for a car loan.

So if you are serious about getting your car credit back on track, you can begin a new chapter in your life by filling out our bad credit car loan application now.

Tags: Bad Credit, bad credit auto loan, bad credit car loan, Credit Repair, no credit auto sales

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