Special auto financing helps bad credit car buyers get approved. Understand the process, requirements, rates, and benefits—then apply online and drive away today.
Special financing programs for cars are loans for borrowers who may not qualify for traditional auto financing. Customers with low credit scores, recent bankruptcies, repossessions, or difficult-to-prove incomes are all good candidates for special financing. Customers with no credit or gaps in their credit also make good candidates. Special financing can be a great way for low-credit or first-time borrowers to secure an auto loan, too.
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People who qualify for special financing may be borrowers who:
Have a past bankruptcyHave a past repossessionHave a poor credit scoreHave a low incomeAre first-time borrowersNeed a cosigner
Loan Options
Chance to Get a Vehicle
Opportunity to Build Credit
Higher Interest Rates
Longer Loan Terms
Down Payment Requirement
Risk of Negative Equity
Special financing lenders assist customers who don't qualify for traditional auto loans by providing loans that may have longer loan terms, higher interest rates, and down payment requirements. While those aspects of special financing aren't typically appealing to the customer, they are there to help special financing lenders get you approved for the auto loan you need.
Special finance auto lenders are generally more lenient when it comes to credit score and minimum income requirements, which can allow many bad-credit customers to get approved. Additionally, special finance lenders report on-time payments to the credit bureaus to help you rebuild your credit score.
To qualify for special financing, you need to apply with the right type of dealership. Not all dealers work with special financing lenders. Before you apply, be sure to check your credit score. Good credit tends to start at 670 on the FICO credit scale, and anyone with a score below that may need a subprime loan through a special financing dealership.
The first step in qualifying for special financing is to check your credit score. This helps you stay in control of the situation by knowing what to expect.
Get an idea of your debt-to-income ratio. Special finance lenders are more lenient when it comes to DTI, but still limit acceptable DTI to around 55%
Budget for a down payment. Most special finance lenders require at least $1,000 down or 10% of the vehicle's selling price, but this depends on your lender and individual situation.
Special financing programs can be available at numerous destinations, but not all dealerships work with the subprime lenders that provide loans to bad-credit borrowers.
See if You Qualify
Is your gross monthly income at least $1,500 per month?See if You Qualify
How long have you lived at your current address?See if You Qualify
Are you 18 years of age or older?
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Special finance loans are typically associated with higher interest rates and down payments than traditional loans, and potentially unfavorable loan terms. Since borrowers face higher interest rates, they face overall higher loan costs in the long run, especially if the loan term is stretched to a length that lowers monthly payments.
Once you have all of your paperwork in order, you will typically meet with the dealership finance team and could even be driving your new car home the same day!
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