Heading out to the auto mall is usually not the best way to find a dealer that offers bad credit car loans
Once you realize you have bad credit, the next step of finding a dealer that can help you is often the most difficult.
During the past 20 years, we've seen this hundreds of times here at Auto Credit Express, where our commitment to consumers with poor credit includes a web site with a bad credit auto loan application – something we knew was needed after seeing the frustration and embarrassment which customers with poor credit often face after getting turned down at a car dealer that doesn't offer second chance auto loans.
And while most of these folks can always use a tote the note dealer, this won't solve their car credit issues since these dealers don't report loans or loan payments to the credit bureaus and many of these loans end up in repossession.
Finding bad credit dealers
If you have bad credit, in many cases you can waste hours and sometimes days trying to find a dealer that can get you financed. If you've tried everything else, here are some suggestions that might help you find the right kind of dealer:
Look for a franchised dealer
You will get a far better deal at a franchised car dealer than at a neighborhood tote the note car lot. Most franchised dealers also have a wider selection of used cars, which is especially important if you hope to finance one with a bad credit auto loan. . If you're looking for a new car, this is where you'll have to go, since only a franchised dealer can legally sell you a new car.
Since new car dealers are usually larger than neighborhood used car lots, they get trade-ins on both the new and used cars they sell. New car dealers also get more of these trade-ins than smaller lots. And while used car lots can get their inventory from the auctions, just like the franchised dealers, the new car dealer can also take advantage of lease turn-in programs and manufacturer-only auctions that are not available to smaller independent used car lots.
The bigger the better
If you have a choice between a small dealer and a big dealer, you should pick the big one. Although there are many reasons, here are two: Even though both small and large dealers pay the same for their vehicles, larger dealers have a higher sales volume. Vehicles tend to turn over at a faster rate on the lots of bigger dealers, ensuring a newer inventory. Big dealers also have larger inventories of vehicles. This means that, as a bad credit auto loan customer, you'll have a larger selection of vehicles to choose from that meet your budget and payment requirements.
A third and even better reason to go to a larger dealer is financing. Since larger dealers send more business to their lender partners, they are usually able to offer a wider range of financing options to their customers, especially if they have a special finance department (they key word being “if”). By sending their bad credit lenders more customers, these dealers usually have more negotiating “leverage” with these banks.
Finding the right dealer
There are currently over 30 lenders that offer car loans with bad credit. Many are small local or regional banks, while some lend to customers in all 50 states. Each has its own set of lending requirements and most do not do direct lending to customers (only through dealers).
But since they don't publish their dealer lists, how can you locate one of these dealers? You could try driving around to every dealer in your area hoping to find one, but you might end up just wasting a lot of time. What should you do?
Give us a try
Most of our applicants have discovered that the easiest way to find a dealer is to visit Auto Credit Express, where 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.