Plain and simple, you have bad credit. You ask yourself the question, “Is it even possible for someone with bad credit to get an auto loan?” The answer is a definite YES! There are many lenders and auto dealerships who are willing to fund bad credit auto loans, also known as subprime loans. In fact, recent reports show that more and more buyers with bad credit are getting approved for auto financing. For a few years, especially at the beginning of the economic downturn, a lot of lenders who specialize in subprime financing were having trouble getting the funds to lend. The lending industry became fearful of the unstable marketplace and limited the amount of loans they were willing to fund, especially to those with bad credit. Fortunately, times have changed, and people with bad credit are finally getting approved for auto loans again.
How Do I find a Lender?
Now that you know there are lenders and auto dealerships who are willing to fund bad credit auto loans, the question then becomes, “how do I find someone who will finance my loan?” You actually have a few options when it comes to finding lenders and dealerships who specialize in subprime loans. The first option is to find a car dealer in your area that specializes in auto financing for bad credit. When you apply for a loan directly at the dealership, the dealership will tell you how much you qualify for and if you qualify, you will then pick out a vehicle on their lot. These dealers are willing to work with people with poor credit, and are commonly referred to as “buy here, pay here” dealers. Basically, the dealer offers you financing, on the condition that you buy a vehicle on their lot. The dealer becomes both the seller and your banker. Keep in mind that not every dealer works with this type of financing, so you need to do a little research. The best way to find dealers in your area who specialize in auto financing for bad credit is to search online or check your local weekend newspaper advertisements. Dealerships that specialize in this type of financing typically advertise the service prominently on their website and in their ads.
Use a Finance Company
Another option available to you is to go through an auto financing company that specializes in auto financing for bad credit, such as BlueSky Auto Finance. At BlueSky, we have an integrated platform of both lenders and dealers who specifically work with people with poor credit. The application process is fast and easy. You apply online and are immediately notified if you have been approved by one of our lenders. If approved, you can then buy your vehicle wherever you choose. In the case that you are not directly approved by one of our lenders, we will send your information to a dealer in your area, if available. If the dealer is able to help you with financing, you will then purchase your vehicle from that dealer. When applying for financing through BlueSky, you are not obligated to accept any loan offers.
It is important to remember that in securing auto financing for bad credit 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. Find a dealer or lender like BlueSky Auto Finance 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.
To apply for financing through BlueSky Auto Finance, click here.