Car buyers with damaged credit usually want to know if they can quality for an auto loan with a zero down payment. The answer in most cases is “no” – unless they have a trade-in with enough equity to meet the lender’s conditions.
For car shoppers with poor credit there are a number of advantages to financing a used vehicle with an auto loan from a subprime lender.
Car buyers with damaged credit can, in some instances, increase their chances of qualifying for an auto loan by correcting the inaccuracies and having outdated negative entries removed from their credit file before starting the application process.
Car buyers with problem credit are sometimes offered the auto loan option of financing a new car and, therefore, should know how to read the new car sticker affixed to the vehicle’s window.
Borrowers with damaged credit need to know how they can partially compensate for the higher interest rates of subprime car loans.
From what we have seen used car buyers – particularly those with problem credit – are particularly at risk to be targeted by unscrupulous sellers that sell used cars that have been either rebuilt or have suffered some other type of hidden damage.
Members of the active military with problem credit might be able to take advantage of an additional new car discount that could lower the overall interest changes on an auto loan provided they qualify for a new car at the right franchised new car dealer.