Low Income Auto Loans
We are often asked by low income auto loan car shoppers who visit our web site why they shouldn't just jump in their current vehicle and drive out to the nearest dealer or auto mall to shop for a car instead of visiting an online web site to apply for an auto loan
. This answer to this question really depends upon their credit history and their FICO score.
Consumers with a FICO score (the credit score that most lenders use) over 640 or more and a fairly extensive credit history should be able to purchase a vehicle with traditional prime or near-prime low income auto loans. But even if this is the case, it still pays to do some research on the internet. Consumer Reports, for example, has an excellent web site that enables visitors to view the repair histories of most cars, so that they can see how the vehicle they're interested in compares with the other cars or trucks in its class.
If you are one of the loan applicants with less than perfect credit looking for low income auto loans
, however, you may want to hold off driving to your local dealer or even the big mega lot in your area. Here's why: the low income auto loans buying process for consumers with bad credit is much different than the traditional auto buying experience. And just as the bad credit buying process is different, so is the dealer that can help you with bad credit low income auto loans
Low income Auto Dealers
The fact is that many dealers choose not to deal with subprime lenders – especially those lenders that specialize in low income auto loans
. These loans require more effort than regular loans due to the fact that these low income auto loans require dealers to be responsible for more documentation that is both correct as well as verifiable. If anything goes wrong in the documentation process, the contract is sent back to the dealer and the dealer subsequently holds the contract for the car.
Low income auto loan cars in inventory also have to meet lender guidelines in terms of mileage and year. The used cars need to be purchased at or below NADA wholesale, since these lenders base their "advance" (how much they will finance) on either NADA or Kelley Blue Book values, depending on where in the country the dealer is located. New cars also have to be within a certain price range, since low income auto loan guidelines can be very strict when it comes to keeping the car payment within a certain budget range. Without the correct inventory, the dealer can't sell any of the cars on the lot to bad credit low income customers.
In addition to documentation and inventory issues, there is the reality of the large number of subprime lenders as well as the complexity involved with understanding the varying programs that they offer. Most subprime lenders have at least five "tiered" programs and each program can have its own set of requirements. Without a knowledgeable special finance department, keeping track of the low income auto loan lenders and their programs is impossible.
The solution to the problem of finding low income auto loans is to go online. We have helped thousands of people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. We also has a network of affiliate dealers that specialize in low income auto loans
throughout the U.S.