Used Car Loan for Bad Credit – Low Interest Possible?
Posted on | August 31, 2009 | No Comments
Getting a used car loan for bad credit with a low interest rate is not very easy but it can be done. Most people have probably heard of friends and family members who got a used car loan for bad credit and they are paying over 15% on the loan. This is the type of interest rate you do not want on a used car loan. If your interest rate is this high, you could just get a credit card and pay for the used car.
If you have negotiating skills you can definitely get a lower interest rate on a used car loan. There are many companies out there vying for your business because the auto industry has been in shambles. Some of the financial companies that offer used car loans are willing to do whatever it takes to get a new customer even if that means that you dictate what interest rate you are willing to pay.
Do not get me wrong, if you have bad credit, you are not going to be able to tell any lender that you want an interest rate of 2.99%. What you can do is be willing to walk away when they do give you an offer. Tell them that the other company you have been working with will give you a much lower interest rate and you are going to go do a deal with them. If you make this statement, you are very likely to get a lower interest rate offer.
The amount of bad credit lenders out there is definitely going to help you get a better deal. The increased number of lenders on the Internet will help borrowers even more. At any time you can go online, apply for a loan and be approved by the next day. This makes it very hard for some lenders to compete because they cannot offer these services. You should mention this to some of the lenders offering you a deal and let them know that they need to lower their rate to get your business.
Overall, you are in a very good position to get a used car loan with a low interest rate. Make sure that you use your negotiating skills and let the bad credit lenders out there know that you can walk away from them and go to a multiple of other lenders including several that are on the Internet. Do not be afraid to say no to the lenders that offer you a bad deal; saying no may save you a ton of money in the future.
Author: Mike Garner
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