If you are looking to finance a car with damaged credit, there are a few things you should know about subprime auto loan requirements. Buying a car can be a pleasant experience or a very stressful one – it really depends on why you need to buy and how much preparation you have done before visiting the dealership.
Here at Auto Credit Express, we have become a trusted leader in the bad credit auto loan industry because we put our customers above all else. "A passion for helping others" is the number one guiding principle that we live by. We take pride in helping people with subprime credit get financed for a car.
In listening to the concerns of our customer base, we have noticed a widespread request. We receive a steady stream of comments along the lines of this:
"I would like to get more information on how the process works."
How to Get A Subprime Auto Loan Through Auto Credit Express
Before laying out how our process works, it is imperative that we clear up one common misconception about Auto Credit Express. We are NOT a direct lender and we will not be the one extending you the loan.
Rather, we are an independent company that's here to connect consumers who have bad credit with local dealerships that can get them financed. Our expertise in the subprime industry and streamlined procedure allow us to help thousands of customers each month.
Here's how the Auto Credit Express subprime auto loan process works:
- You Apply Online.
Our process begins when you submit an application with us online. We have designed this form to be straightforward, but it also contains more fields than the average subprime auto loan application. This is because we are trying to gather as much information about your financial and credit situation as possible. The more information we have, the easier it is for us to pair you with the perfect car dealer for your needs and situation.
- We Pair You with the People Who Can Help.
In our never-ending mission to serve our customers, we have woven together the nation's largest subprime dealer network. You no longer have to waste your time going from place to place looking for financing. We will find a dealer in your local area for you who can work with your unique situation.
- Go Get Your Car!
Once we've found the right match, a representative from our team will get in touch with you to set up a meeting with the Finance Manager at the dealership. Once you meet with them, they'll send your information along to the lenders they work with to see if you are approved. They'll tell the dealership how much of a loan you are approved for, and then you can choose a vehicle that you qualify for from their inventory. Once that's finished, there's nothing left to do but sign the paperwork and drive off in your new vehicle.
Checklist for Subprime Auto Loan
What can borrowers do to prepare for a subprime auto loan? We have the following tips:
Check your credit. Earlier, the young man who reached out to us mentioned that his credit was "not the best." When you work with a subprime lender, they will do everything possible to get you approved. At the same time, the circumstances that caused your current credit situation will affect the kind of loan terms a lender can offer to you.
Find out what documents the lender will need. Before you meet with the dealer/lender, be sure that you have all the documents they will typically need to process your loan application. These are the basics:
- A valid driver's license
- 18 years of age or older
- A legal resident of the United States or Canada (typical minimum is 6 months)
- Proof of employment and income (paycheck stubs, employer contact information)
- Proof of residence (such as a utility bill)
- Personal reference list
The Question of Subprime Financing
Recently, we received a question from a prospective buyer who wants to know what his options are for financing a new vehicle.
"Hi, I am a young man trying to get back and forth to work. The vehicle I was driving was given to me by my parents and was totaled in a car accident. I don't have enough money saved up to buy another car and my credit is not the best. Can you help me get at least a $3000 loan so I can purchase a used car?"
There are a lot of parts to this question, so we will do our best to answer as many of them as possible.
Let's start off with the primary question - "Can you help me get at least a $3000 loan so I can purchase a used car?" There are four parts to this question.
- Let's start off by explaining what we do here at Auto Credit Express. We are not a lender - we connect car buyers with damaged credit with auto dealerships that work with subprime lenders. To ensure our customers get the best deal possible, we only work with licensed car dealers and do not work with private sellers.
- Subprime lenders typically have a minimum financing amount of $5,000. This means that car buyers with bad credit should be able to afford the payments on a car loan of at least $5,000.
- The vehicle that is being purchased will need to fall into a typical subprime lender's guidelines, meaning that it will need to be 10 years old or newer and have less than 100,000 miles on it in order to qualify.
- The applicant will need to meet all of a lender's additional requirements for loan approval.
What we cannot definitively answer:
The buyer who contacted us also mentioned that the vehicle was given to him by his parents. Since it is unclear to us whether or not he made any payments on it himself or if it was completely paid for by his parents, we cannot determine if he has any previous car credit history for a lender to go on when determining approval. Having previous auto loan history can help a buyer's chances when seeking approval from an auto lender.
In the question, it was unclear what he meant when he says that he didn't "have enough money saved up to buy another car." Did he have some money set aside, but not enough to pay for another vehicle in full? We don't know. However, in most cases, subprime lenders want borrowers to have some sort of down payment available.
A Helping Hand
Auto Credit Express has been in the business of connecting car buyers with problem credit with dealers that can help them for over two decades. Once you complete the secure, fast, and obligation-free online auto loan request form, we will connect you with a dealer in your local area that will do everything possible to get you back on the road. Get started today.