When you’re out car shopping, one of the first things you’ll need to do before deciding to buy that car is to find out how much it costs. After all, if you can’t afford the payments, then the car is just going to sit there and depreciate in value. However, if you have bad credit or even no credit at all, it may seem like getting a loan on your new car will be impossible.
How Do I Start Shopping For a Car Loan If I Have Bad Credit?
Despite what you might think, not all car dealerships are from the same cloth. Some will work with you, whether you have bad credit or not, while others won’t even look at your application. Thankfully, there are many options for people like you. Just be sure to do your research first and shop around until you find one that works for you.
Bad Credit Financing Options at Car Dealers
If you need to finance a new or used car and have bad credit, shopping around for financing is essential. Some bad credit financing options include:
- Buy Here Pay Here (BHPH)
- Purchase Order Financing
- Tax Credits & Incentives
You’ll find many car dealerships offer bad credit financing, but it may not be as good as it sounds. So before going with a dealer’s financing option, make sure you do your homework to find out what bad credit auto loans are available from financial institutions and credit unions near you.
How Can I Compare Different Loans From Different Dealerships Online?
While many dealerships offer bad credit car loans, it’s not uncommon for them to have slightly different requirements for qualification. Just because one dealership offers you financing on your vehicle doesn’t mean another one won’t be able to give you better terms. Get rates from several different dealerships and see what kind of deal you can find.
What Are The Advantages Of Relying On An Online Lender For My Car Loans Applications?
There’s no need to visit physical locations or fill out paperwork to obtain financing from lenders. Instead, simply fill in an online application and follow up with one or two phone calls, and you could have financing within hours.
How to Choose an Online Lender
- Make sure the FCA regulates the lender you choose
- You should be offered a range of choices for the terms of your loan
- If you’ve had credit problems in the past, an unsecured lender might be a better choice
- Is the lender charging exorbitant rates? Check for APR and fees
Shopping for car loans online offers several advantages. First, it saves you time—and time is money. In addition, reputable online lenders offer competitive rates that are often lower than those offered by brick-and-mortar finance shops.
Regardless of how bad credit you have, you always have options when it comes to purchasing a car. According to Lantern by SoFi, “You might even consider asking a cosigner to help you get approved for a loan.”