Bad Credit Auto Loans – Good Rates Available for You?
Posted on | August 28, 2009 | 2 Comments
Bad credit auto loans have been a hot topic as of late because many bad credit borrowers are attempting to find forms of transportation. The question many borrowers are asking is if there are good rates available for them? Well, the answer to that question changes with every single situation. Based on your credit score, where you live and what bank or lender you use, your auto loan interest rate can greatly change. If you have bad credit, you might not get the best possible rate, but reasonable rates are still out there.
When getting a bad credit auto loan you will want to contact several loan companies. If you just contact one or two you could be setting yourself up for failure because they could quote you at an interest rates that is extremely high and you may not even know it. We all have friends and family members who have auto loans in the upper teens and even 20% range. This is absolutely crazy! You could get a credit card for a lower interest rate than that.
If you contact several lending institutions you will be able to better negotiate a deal with your lender of choice. It is not difficult at all to find bad credit auto loan lenders as they are all over the place these days. You have, most like, seen advertisements on the television and Internet for these companies; especially since the whole Cash for Clunkers program began a hot topic. By contacting several of these companies, you can set yourself up to better know what to expect when they offer you a particular interest rate.
Another suggestion is to be able to walk away at any time. It is very similar to buying a car. If you can walk away, the car dealership knows that you do not have to have that car. If you can walk away from the loan company they know that you do not have to have that loan from them and they will pursue you with a better deal, most likely in the form of a lower interest rate. They may even offer a few incentives just to get you as a customer.
Most of the companies offering bad credit auto loans have struggled through this recession just as bad as you have so they are looking for customers. You can be quite picky because of this. Do not limit yourself to just a few lenders; there are actually lenders that you can get everything done solely through the Internet so please do not feel that you have to go with your hometown back or the auto loan company on the corner. You have the options, now get out there and get that low interest rate on your bad credit auto loan.
Author: Heather Best
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2 Responses to “Bad Credit Auto Loans – Good Rates Available for You?”
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September 17th, 2009 @ 8:17 pm
I need a car loan to buy out lease. Residual value is $57,000 but Mercedes Financial offered about $45,000 plus tax and fee for a total of about $48,700. I am willing to put a significant amount towards payment of car depending on interest rate impact. I have poor credit rating for reasons I can explain but I also have high income.
September 17th, 2009 @ 8:19 pm
I obtained my credit scores a few days ago. They were 583, 588 and 593.