There is a way to increase your chances of finding a dealer that offers no credit auto loans
Getting back on your feet after a financial setback can be especially difficult if you need a car and can't find a dealer that offers horrible credit auto loans.
We should know because here at Auto Credit Express we've been involved in bad credit car sales for twenty years. We even created a web site for applicants so they can learn about issues such as repossession, loan requirements, as well as today's topic, finding the right kind of dealer for a problem credit auto loan.
The right dealer
If you have bad credit the biggest obstacle is usually finding a dealer that will finance a bad credit car. While thousands of dealerships say they can help, most are buy here pay here dealers.
These dealers can put you in a car, but they won't report the loan or your payments to the credit bureaus. You'll have transportation, but your FICO scores won't improve and you'll still have no auto credit history the next time you need a car loan.
Another reason you should think twice about these tote the note loans is that most buy here pay here car lots are not affiliated with a new car franchise. As a result their inventories usually consist of older, high-mileage cars that are often unreliable.
Alternatively, many new car dealers don't want to get involved with a problem credit car loan. Unlike traditional new car financing, dealing with bad credit lenders requires special training for dealership employees. Dealers also need to stock the right year and mileage vehicles.
As a result, many new car dealers have neither the time nor the patience to maintain a special finance department with the right kind of cars for bad credit customers.
Bad credit websites
The internet has changed the way customers with good and bad credit buy cars. Web sites such as ours are able to match the requirements of bad credit customers with dealers that are experienced in bad credit auto loans.
The lenders these dealers use report your payments to the credit bureaus and offer advantages over tote the note dealers that include:
1. The ability to choose a vehicle from a much larger inventory.
2. Lender requirements that vehicles be either new cars or newer used cars with lower miles.
3. The majority of these vehicles are eligible for service contracts that often cover the entire loan term, helping you avoid potentially high repair bills.
4. Loans and payments are reported to the credit bureaus so you can raise your credit scores and establish your car credit.
Auto Credit Express has helped thousands of individuals with bad credit find a dealer for their best chance of an approval for a car loan.
If you fall into that category, the process can be started now by filling out our online car loans bad credit application.