Subprime Auto Loans
Special Finance Loans
Easy as 1, 2, 3!
In today's tough economy, subprime auto loans, for D and F credit tiers, are not as easy to get approved for as they once were.
That being said, it is still possible to get approved. In fact, there are bad credit lenders that will 100% guarantee your credit approval. Trust me I work with them all the time and Nobody Gets Turned Down based on past or present credit issues.
If you're looking for an auto loan and have bad credit, no credit, or out right horrible credit, there are special finance loan specialists that can help and subprime auto loans are their specialty.
In fact, I'll show you two great sources to apply for special finance and subprime auto loans and teach you how to buy a car with bad credit..
So What's The Problem?
If you've applied online and even gone to multiple dealerships, to only get the same answer...A resounding NO! Don't take it personally. It's not you, it's just what happens when you work with the wrong dealers and/or lenders.
You may be thinking to yourself that you have applied to some of the biggest banks in the country and have gone to some fairly large dealerships, so if they can't get you approved, who can?
First off, the larger banks, do not typically cater to those in search of subprime auto loans, nor do most car dealerships.
For the lenders there is simply too much risk and for the car dealerships it is, in their minds, too much of a hassle. This is where a special finance loans specialist comes into play.
A good one will:
- Understand your needs.
- Work with the right lenders.
- Stock the right inventory of cars.
- Know how to properly structure subprime auto loans.
Here's What To Do
My advice would be to call some local car dealerships, ask them if they have a special finance department and, if they do, ask to speak to one of their loan specialists.
Once on the phone with them explain your situation and see what services they can offer to help you. There are four key questions that you'll find on the bad credit auto loans that I'd highly recommend you ask any dealership you will be working with before you get started with them.
These questions will help you to determine upfront if the dealer you are working with is any good at what you need them to do, which is to get you approved.
If you like what they have to say, go visit them. If you don't like what they have to say, call the next car dealership in the phone book, until you find the right one.
It's a little time consuming to make all these calls, but it's well worth it when you find the right special finance loans specialist that can get you on the road and driving a new car, fast and affordably.
Even though this process may take some time, it can actually save you time by not going dealer to dealer, filling out credit application after credit application and waiting an hour at each to see what, if any, approval you may get.
If you'd like to avoid the phone calls and get approved quickly, then simply take a look at the resources below. Subprime auto loans are exactly what each of these companies specialize in.
How To Get The Best Approvals
For Subprime Auto Loans
The following advice is not a list of mandatory requirements, but a list of things you can do to get yourself a better approval and to give yourself more options as to the type of car you can buy.
- Check Your Credit
Oh what a difference a point makes! If you have a credit score of 539, then you will automatically be disqualified from applying to a majority of the nations top non-prime auto lenders.
On the other hand, a 540 credit score opens the door to all those non-prime lenders that may give you a much better approval than the under 540 subprime auto lenders.
Take a look and see where you stand. If it's a matter of some small medical, utility or other collection, then pay it off and wait 30 days for your score to update. The difference in your interest rate could save you thousands of dollars in the long run. What’s your Credit Score? Find out FREE with enrollment!
- Save Up Some Money Down
How much? The more the better! If you want to be picky about the car you are going to buy, then cash down will help you do that. The minimum I'd recommend would be 10% or $1,000, but preferably 25% or $2,500.
Auto lenders like down payment, because with subprime auto loans it ultimately means your loan is less of a risk for them and they will usually reward larger down payments with approvals and better rates.
If you really need a car bad and don't have time to save, then you can still buy, but just don't be too picky, because your options may be somewhat limited.
- Don't Make Any Sudden Moves
This applies to both your job and your residence. If you know that you will be changing jobs and/or relocating, then buy your car (and make sure your loan funds) before you make any big changes.
Lenders will not be too eager to loan you money at the better rates if you've been on the job for one week and only been in the state for a month. Auto lenders look at this as being a much riskier loan and it will usually have an affect on their scoring system that may get you turned down and/or paying some very high interest rates.
Subprime Auto Loans
There are dealerships across the country that have special finance departments that cater to customers with bad credit, bankruptcies, foreclosure, no credit, etc.
You can certainly try to find a loan on your own, but with subprime credit your chances of finding one are not good. In fact, you'll probably end up investing a bunch of time to only rack up a bunch of credit inquiries and ultimately be disappointed.
Here are three great resources
to help you get the auto loan you need. You can apply to one, none or all of these, the choice is yours...
Option #1 - FundingWay (Part of the ACE group)Apply Here: US Residents | En Espanol
Simply fill out either one of these secure, 60 second auto loan applications and a special finance loans specialist in your local area will be in touch with you shortly to discuss the details of your new auto loan.
- $1,500 monthly gross income.
- No repossessions in the past year unless included in a bankruptcy.
- All applicants must be at least 18 years of age.
- Service not available for purchases outside of North America.
- Service not available for purchases from private parties or refinancing.
Option #2 - DriveTime
My other source is both the car dealer and the lender. They used to be one of my biggest competitors when I worked down in Austin, TX. They have roughly 100 dealerships nationwide and flexible terms that I often couldn't compete with.
I really like their inventory of cars and the inspection process they put their cars through. Only problem is they are only in 13 states.
You can apply here...
Bad credit, no credit, no problem.
Apply online; it takes 2 minutes.
To Sum This Up
It is possible to get approved for subprime auto loans, even in a tight economy, but the question is what type of approval and with what type of lender.
Essentially, the more you can bring to the table, the more you help yourself to get the better interest rates and the car of your choice.
Be sure to work with a qualified special finance loans specialist from the start, as this will help to simplify your subprime auto loans approval and your entire car buying process.
Return from Subprime Auto Loans to Bad Credit Auto Loans
Go to Insider Car Buying Tips home