Bank/Credit Union - A large number of customers turn to their own personal bank or credit union when financing a vehicle. These types of lenders are known for offering better rates, special benefits, and personalized loans for individuals who have accounts with them. The downside of car loans from banks is that they generally involve higher down payments for people who have poor credit scores.
Auto Dealership - Local dealerships are one of the primary places that car buyers turn to when they are in need of an automobile loan. This is largely due to convenience, connection to banks and loan companies, and special incentives/finance programs offered by manufacturers. Some dealers are also more open to offering car financing to people with credit problems and limited money down, but that depends on the lenders that they work with.
Online Referral Source - There are a number websites, like Auto Credit Express, that feature a car financing quote service to people across the country. By using this type of service, you're able to experience a fast and easy car loan process that caters to consumers with subprime credit scores. These services take your loan request and connect you with local dealers that, in turn, connect you with the best special finance lenders.
Online Lenders - Many banks and loan companies will allow you to apply online. The downside is that these lenders mostly only work with applicants who have good to excellent credit scores.
BHPH Car Lot - A buy here, pay here car lot is typically viewed as a last resort car loan source for people with bad credit ratings. Often, consumers can get financing with no credit check, and the dealer offers a loan based on the value of the vehicle. However, these loan agreements come with high monthly payments, interest rates, and down payments. There is also a chance that BHPH dealers will not report to the credit bureaus if you make timely payments on a loan.
