Striving toward the purchase of a dream car but credit problems have you stuck? Long summer days often have people wishing they were cruising in the car of their dreams. Achieving this dream is possible, but for consumers with credit challenges, it may take some work first. Rather than being stuck in the mindset that you will only purchase one specific vehicle, a little flexibility goes a long way toward making your dream a reality.

Differences in the Car Buying Process

When most people think of buying a car, they typically assume the first step is to pick out a vehicle. However, the first step in any car buying situation should always be to know your credit. When you have bad credit, one thing to remember is that you have to be flexible; your choices may be limited at a dealership. This is because subprime auto financing works differently than conventional auto loans.

If your credit score is around 650 or higher, then you will most likely qualify for a traditional auto loan. In this case, you can begin to search for a vehicle that you would love to own. The conventional auto buying process can be relatively simple:

  • Pick out your vehicle
  • Get approved for a loan
  • Sign your paperwork
  • Take delivery of your vehicle

When your credit score is below the 650 range, however, you may need to consider subprime financing, depending on your credit history. If this is the route you must take, there are considerably more steps to note. One reason for this is because subprime lenders typically work indirectly through dealers. You will be hard pressed to find direct financing in the subprime market.

The subprime auto buying process is almost the reverse of the conventional one:dream car

  • Apply for a loan with a dealer
  • Dealer submits your request and accompanying documentation to lenders
  • Lender approval comes with “payment call” to outline any additional stipulations
  • Dealer presents you with a list of in-stock vehicles you qualify for
  • Choose your vehicle from those available
  • Sign your paperwork
  • Take delivery of your vehicle

Though this process seems complicated, it can be a necessary step toward the eventual purchase of your dream car. An auto loan can be one of the best ways to improve your credit. When you make all your payments on time and adhere to the terms of your financing, you can significantly raise your credit score. This boost may make it possible for your next loan to be the one that finances your dream car!

The Bottom Line

So, if you want to begin building your credit and someday make that dream car your reality, Auto Credit Express can help. Our network of dealers specialize in assisting people in less than perfect credit situations. Take the first steps by filling out an auto loan request form today.