Bad Credit Auto Loans Vs. Guaranteed Auto Financing

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Guaranteed auto financing is financing that doesn't involve a credit check. Instead of running a credit check, in-house financing dealers use your income to determine what you qualify for. Guaranteed auto financing is a great option for car buyers who need a vehicle fast and are struggling with credit. But, be careful, because these dealers have minimum income requirements, so you need to make sure you're able to qualify with your income.

Here at Auto Credit Express, we don't offer auto loans, nor can we guarantee an approval for a car loan. What we can do is connect you to a local dealership with the lending resources available to help buyers in unique credit situations. For close to 20 years, we've helped car buyers with bad credit, no credit, and other credit issues find dealers that are willing and able to work with them, including in-house financing dealerships that offer guaranteed auto financing.

Does Guaranteed Auto Financing Exist?

Guaranteed auto financing does exist. This type of loan is almost always offered by in-house financing dealerships that don't rely on checking your credit in order to approve you for an auto loan. Instead, these types of dealers use your income to determine if you can afford a car payment.

Guaranteed car loans are great for people with bad or no credit, and dealers typically won't run your credit for approval. But make no mistake, there are still requirements for getting these “guaranteed” auto loans, such as making a minimum income, having a down payment, and providing certain documentation like proof of income and a valid driver's license.

At guaranteed auto financing dealers, you can often get approved for a vehicle that you can drive away in on the same day, as long as you qualify, have the required documents, and make a down payment. The vehicles you'll be able to get are likely to be older model used cars, and you'll typically have to pay a higher interest rate than you would through a subprime lender. Also, because guaranteed auto financing dealerships don't usually check your credit, they're also not as likely to report your loan and payments to the national credit bureaus.

Requirements for Guaranteed Auto Financing

Guaranteed auto financing is a good option for car buyers looking for a vehicle fast. You can find guaranteed auto financing at in-house financing dealers – also known as buy here pay here lots. Instead of using your credit, the dealer looks at your income and employment in order to qualify you for a guaranteed car loan. While income requirements vary, in-house dealers typically look for a minimum income of around $1,500 to $2,000 a month before taxes.

You'll likely need to provide proof of income and employment with a recent paycheck stub, and you'll also be required to have a down payment. The amount you need to put down varies by dealer, but you can expect to need a minimum of around $1,000 or 10 percent of the vehicle's selling price, whichever is lower. In addition, you may be asked to provide proof of residence with a recent utility bill and a list of personal references, though the amount needed varies.

It's a good idea to get in contact with the guaranteed auto financing dealership before paying them a visit to ask what they'll need you to bring.

Guaranteed Auto Loans with No Money Down

Even though some dealers or lenders offer no money down auto loans, they aren't guaranteed. Guaranteed auto loans are done in house, and these dealers almost always require a down payment. It's not likely you'll be able to find a guaranteed car loan where you're not asked for money down. It's part of process that allows these in-house financing dealerships to virtually guarantee approval. Just how much you'll need to put down depends on the dealer's requirements and the vehicle's selling price.

However, there is a way that you can get a guaranteed auto loan without putting your own money down. If you have a vehicle with equity or that's paid off, you can trade it in and apply the equity or its value as a down payment. Car dealerships, including those that offer guaranteed auto loans, are happy to accept trade-ins as a down payment.

In some cases, this can allow you to meet the down payment requirement without needing to use your own cash. Weigh all of your options first and ask questions before making any decisions – you never know what the dealer has to offer.

Guaranteed Auto Financing Dealerships Near You

It can be difficult finding a guaranteed auto financing dealership in your area. How can you tell the difference between a dealer that offers in-house financing and one that doesn't? Instead of visiting or calling multiple dealerships looking for one that can help you, we offer an easier solution.

Here at Auto Credit Express, we want you to be able to get the financing you need. That's why we work with a nationwide network of special finance dealerships, including guaranteed auto finance dealers. We can help ease the stress of finding a dealer in your area.

If you need to find a guaranteed auto financing dealership near you, you've come to the right place. Just fill out our easy auto loan request form online and we'll get to work matching you with a dealer in your area!

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