Do you need to buy a new or used car? One of the critical parts of buying this new car is how to finance it. Getting the financing for a car loan in many instances is more stressful than actually buying the car. If you have excellent or very good credit the process is quite simple. On the other hand if you are with the 73.5% majority of us and have bad credit, bankruptcy or a low credit score the bad credit car loan approval process can be quite tricky.
We are going to provide you with more than 35 years of knowledge and experience in the auto finance business which will help you navigate the treacherous waters of how to get a car loan and save thousands of dollars.
Car loans fall into two main categories:
- Excellent or good credit car loans. In today’s revised credit score system, this type of loan generally requires a credit score that would be 700 and above. Finance rates will certainly be in low single digits and manufacturer subsidized financing many times is your best option as they often offer 0% for terms up to 72 months but those longer terms should be avoided if possible. Examples of auto dealer financing would be captive auto lenders like Ford Motor Credit or Ally Financing for GM brands.
- Bad credit car loans represent roughly 68 to 72% of all the auto loans being approved today. To clarify one thing the term “bad” simply refers to a credit score range that really consists of scores below 650 all the way down to no credit score. We are going to guide you through how to get a car loan with bad credit or no credit. First thing you should know is that it is easier right now to get a car loan than it has been in the last 10 years.You’ve probably heard in the news recently about subprime auto loans are really growing. The reason for this is people who have bought a car in the last year or two have paid their monthly payments, which allow the banks to be more aggressive when reviewing your loan application. OK ready for the real information on how to get it done?If you are in the 2ndcategory, here are the inside steps to getting approved that dealers really wish you didn’t know.
- Determine what you can truly afford and not necessarily your dream car. We provide a great tool to do just that. Take a look at our free auto loan calculator. You can try all types of combinations with the car payment calculator that will show you what will fit into any budget. You should always know how much your monthly payment will be and don’t forget to include any insurance payment as well.
- This may come as a bit of a surprise for you but the best source for subprime auto finance are the car dealers who specialize in special finance. Why? If you went to a bank or credit union you have one shot. The bad credit car dealers have anywhere from 10 to 25 banks who specialty is making auto loans for bad credit people. So does it make sense you have a much better chance of getting approved with so many choices? I most certainly think so. You can use the security and privacy of the Internet to apply for a car loan online.
- Be informed about new or used car prices. It is very easy to save a lot of money by simply knowing what is reasonable especially when it comes to used car pricing. New cars are easy as you can find out exactly what the dealer paid the manufacturer for the car. Used cars are totally different as the local dealer determines what to charge for the car. All the more reason for you to be informed, after all it’s your money. We provide this great information here: new & used car prices. Once you are armed with this information, you won’t be taken advantage of when negotiating the price of the car. Hope you didn’t miss that last sentence; you can negotiate the price of your car and should always do so. You are never going to get the best price the first time regardless of your credit situation. If you happen to be trading in a car always check car values to ensure you are getting the best trade in book value for your car.
- Once you get the call from the dealer with the good news here are some tips on finalizing your deal once you select the car. Most banks require some documentation like current pay stub; this is to verify your income. You may also need a utility bill, phone bill and proof of insurance.
- Here are some final suggestions to ensure both a pleasurable car buying experience and yes save some money in the process. First you are always in charge. If you have followed the information above you are well prepared to negotiate your best deal. Make sure the car or truck you chose is what you want and not what the dealer is trying to sell you. After all you are responsible for making those monthly payments. If your finances permit, you will improve your chances of getting the best car loan if have a down payment. The lenders love to see that you have an investment in the automobile. It doesn’t have to be a huge down payment but it will lessen the amount of interest you pay over the life of the loan.
- If you need to get a bad credit car loan, you now have the confidence to get the best possible deal. Please remember just because you have to find a car loan with bad credit doesn’t mean you can’t get a great low rate. Don’t be afraid to ask about the many car finance options offered by the dealer.
We have helped literally tens of thousands of people with bad credit, poor credit, no credit or bankruptcy get approved for car loans they never thought possible. Make the most of the opportunity the lenders are providing right now so you can buy the new or used car you really want. You can get approved today!