Getting a bad credit auto loan is certainly not as easy as getting one with good credit, but that doesn't mean it is impossible. In fact, we have found that regardless of income, money down and previous credit history, we are able to provide customers with auto loans.
The people who generally have the most frustrating time purchasing a vehicle are those with bad credit, which there is really no acceptable reason for. It is true that when a customer has bad credit it is generally more work to find a way to get an approval that works for the customer, the bank, and the dealership, but it happens to be the job of anyone on the sales side of a dealership to deliver cars to customers.
Due to this fact, we have identified the difficulties most of our customers have when purchasing a used vehicle with bad credit and came up with some solutions. Read below for the three most common difficulties and the solutions we have come up with.
Reason #1: Lack of money down
If you have bad credit, it is almost an unavoidable reality that you will have to put money down in order to get an auto loan. It is common for some dealerships to require huge down payments in order to qualify a customer for an auto loan: sometimes in the realm of 2,000 to 3,000 dollars.
The reality of the situation is some vehicles will require large down payments due to the value of the vehicle, but there are ways around this. To solve this problem, we sometimes find a vehicle that may qualify with less money down, ask the bank for an exception, or in some cases use a deffered down payment program.
Reason #2: Income is not at least $2,000 per month
Many banks have minimum income requirements which, for people who make less than the income requirements, makes getting an auto loan difficult. Even if you have good credit, a small monthly income may make it difficult to get an auto loan.
In order to provide a solution to people who do not meet traditional income requirements, we have signed up lenders who work with customers with low monthly incomes. This does not mean we will be able to get you approved for a huge auto loan, but we can provide most income levels with some sort of financing.
Reason #3: You owe more on your trade than it is worth
Being "upside down" on a trade can make getting an auto loan with bad credit substantially more frustrating. If you previously had bad credit, you may have taken out a loan with high interest, gotten a vehicle that is older with higher mileage, and now it is barely drivable or it no longer fits your needs.
While in some cases it is true that owing more on your vehicle may make it impossible to trade it in for another vehicle, those cases are rare. With a combination of a strong trade value and finding the right vehicle that works for the customer and the bank, we can typically help customers that are upside down in their current vehicle.
Topics: bad credit auto Ioan