What is Guaranteed Auto Financing?

Guaranteed auto financing typically provides a last chance option for people with poor or no credit, who have been denied by traditional financial institutions, to obtain a car loan. It is a loan that is taken out directly through a guaranteed auto financing dealership, which means that the dealer is willing to work with any buyer, regardless of their credit history. Essentially, you are financing your car from the company that owns the vehicle. The dealership not only sells you the car, but they are also your banker. This is also known as a “buy here pay here” dealership. Dealerships specializing in guaranteed auto financing strictly finance used cars. It is almost unheard of to find new cars under this type of program.

Research Goes A Long Way

Because dealerships specializing in guaranteed auto financing are taking a higher risk in financing people with poor credit, the interest rates they charge will usually be extremely high. For this reason, it is important to purchase a less expensive vehicle to keep your payments low. If possible, a down payment or co-signer can also help to lower your interest rate. The guaranteed auto financing dealership has the option of reporting your payments to the credit bureaus. It is important to make sure your payments are reported so that you are able to build/re-build your credit history.

Guaranteed auto financing dealerships advertise through radio ads, on the internet, and in the Sunday newspaper. You will typically see or hear statements like, “We finance anyone!” Or, “Bad credit is not a problem!” They emphasize to customers that there is a car with your name on it, regardless of your financial standing. As long as the potential car buyer has a job that allows for the monthly payments on the car, most guaranteed auto financing dealerships will find a way to get you in a vehicle.

Build Up Your Credit History

It is important to remember that in securing guaranteed auto financing, you may not be able to walk away with your dream car, but that you are building up your credit history so that you may do so in the future. In obtaining a bad credit car loan, a little research goes a long way. Find a dealer who is willing to work with you, and purchase an inexpensive vehicle. Not only are you purchasing a vehicle, but you are attempting to raise your credit score, so that when you are purchase a vehicle in the future, you have more options available to you.

For more information in applying for auto loans through BlueSky Auto Finance click here. BlueSky welcomes your business and thanks you for trusting us to help you obtain auto financing. We realize that you have many options and thank you for choosing BlueSky Auto Finance.