Finding a dealership to work with when you have bad credit can seem like a mountain of a task. Not all dealerships work with credit-challenged consumers and some of the ones that do, don't advertise. At Auto Credit Express, we know how frustrating it can be to have to search for a second chance car loan on your own, and we want to help.

Dealerships for Bad Credit Car Loans

There are many different types of dealerships and different types of lenders that provide auto financing. The one that’s right for your situation depends on many factors including your credit situation, the amount you're hoping to finance, and how you're planning to repay your loan.

Some lenders, such as subprime lenders, may work with both franchised and independent dealers alike. Other lenders, like captive lenders, only work through specific franchised dealerships. Direct lenders, whom you don't find through a dealer, may only work with borrowers that have good credit. One other type – a buy here pay here (BHPH) dealer – may be helpful if you've already been turned down for a second chance car loan.

Traditional Dealerships

Traditional dealerships are typically what people think of when they think of going to a dealer for a car. These are franchised dealerships belonging to a certain brand or group of brands and are the only authorized sellers of new cars. Some franchised dealers also sell used cars and may have a back lot which is treated like a BHPH lot.

These dealers may have both captive and independent lenders that can help a wide range of consumers with the financing they need. Some captive lenders that work with traditional dealerships are known for financing borrowers with good and bad credit, such as Kia Motor Finance and Ford Credit.

Special Finance Dealerships

Special finance dealers specialize in working with borrowers who have less than perfect credit. These dealerships are generally independent dealers that specialize in used cars. In fact, unless the dealership is franchised, it can't sell new cars. However, both independent and franchised dealers can have special financing.

When you work with a special finance dealer you get the chance to work with a subprime lender that looks beyond your credit score to other factors that show you're qualified to take on a car loan. Typically these lenders make sure that you have the ability, stability, and willingness to take on auto financing.

You can only apply for a loan with a subprime lender through a dealership, as they're indirect lenders, and don't meet directly with borrowers; the finance manager at the dealership is your intermediary.

BHPH Dealers

These are in-house financers who are both dealers and lenders. They specialize in helping borrowers get the cars they need quickly, and sometimes without a credit check. Though BHPH dealers are a good option in a pinch and may be able to get you into a vehicle even with a low credit score, the trade-offs may not be worth it.

BHPH dealers only sell used cars, and if they don't check your credit they're less likely to report your timely payments to the credit bureaus. You may also find that you need a larger down payment and only qualify for a high interest rate at a BHPH lot.

Let Us Lead the Way

No matter which dealership you want to work with, we want to connect you with a local dealership that has the lending resources you need. It can be difficult to find a dealership on your own if you're not sure what to look for. Instead of driving around town being turned down by the wrong dealership, let us match you with the right one!

Get started today by filling out our fast, free no-obligation auto loan request form. We'll get right to work matching you with a dealership so you can start your car-buying journey.