When your credit is damaged, your options for auto financing of any kind are dramatically reduced. So, of course, walking into any old dealership and saying “finance me” is out of the question, and honestly, a waste of time. So, where do you go?
The moderation in subprime auto loans means that high-risk lenders can afford to be more selective. It also means that potential borrowers with less than perfect credit should check their credit reports, know their credit scores and plan on a larger down payment to maximize their chances of success.
Vehicle repossession is never a good thing and a black mark like this can linger on a credit report for seven years or longer. Multiple repossessions are even worse and, for the most part, consumers must wait until just one appears in their credit file.
Consumers with damaged credit need to know that they’re really not alone and that there are lenders out there willing to work with them – they just have to know where to find them – which is where we come in.
The current lending climate for consumers with problem credit is the best it’s been since before the great recession. But while now is a good time to buy a car, buyers need to realize that using a large down payment and picking an affordable vehicle will maximize their chances of successfully reestablishing their credit.
There are several factors that could possibly cause you to be denied for auto financing; the good news though, is you can often correct these issues.
In as little as six months to a year, you can build your credit history; however, do you want a good credit history? That is going to take a little more time.