Bad Credit Auto Loan – Financing through a Car Dealership Not an Option?
Posted on | January 25, 2010 | 1 Comment
If you are looking for a bad credit auto loan because financing through a car dealership is not an option then you will need to do a significant amount of research. With the advancements in technology is much easier today than ever to find a bad credit lender online. It is important to understand that these bad credit lenders are often going to give you a high interest rate on your auto loan.
Many car dealerships are advertising 2.9% interest rates on new car purchases. It is extremely important to note that at the end of each of these commercials you are hearing that these offers are only available to well-qualified buyers. If you have a credit score that is well below 650 you are not considered a well-qualified buyer.
Just because you have a bad credit score does not mean that you cannot buy a new car in 2010. What it does mean is that you’re going to have to look for financing in places other than the car dealership. A very good place to start would be your personal bank and if they are not willing to offer you a car loan and then you may want to consider some bad credit lenders.
As stated earlier, you are likely to find these bad credit lenders are going to give you a very high interest rate on your auto loan. You are considered a risky borrower and they are going to punish you for your bad financial decisions by increasing your interest rate. The only thing you can do to lower your interest rate is to improve your credit score.
If you have a very bad credit score and you have missed several bill payments in the recent past than you might want to reconsider buying a new car. All this is going to do is give you another bill that is going to add up the amount of money that you owe on your debts.
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One Response to “Bad Credit Auto Loan – Financing through a Car Dealership Not an Option?”
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January 28th, 2010 @ 5:44 pm
If you have bad credit you have to be realistic about the finance rate you will be charged. It will be higher than a prime loan rate due to being a higher risk to a lender.