Bad Credit Auto Loans With No Dealer Restrictions
Is there such a loan for people with bad credit to get a loan without having to pick from a list of dealers that the loan company has a deal with?
If so can you give me some names of company so I can freely choose my own dealership to purchase my auto from?Answer:
It depends on how bad your credit is...
If the majority of your credit is positive, but there are a couple of accounts that were paid slow and/or small collection accounts, then you could try lenders like Capital One, Wells Fargo or Chase.
If you have little to no credit, or the majority of your accounts have been slowed paid, are in collections or have been charged off, then you'll need to work with a dealer that specializes in bad credit auto loans.
I don't know the exact reason subprime lenders do it this way, but I'm assuming it has to do with the structuring of loans, understanding their guidelines, collecting the required stipulations, proper titling and they have an entity to hold responsible if things go bad.
So, you can:
- Try one of the 3 lenders from above
- Apply to a local dealer that possibly works with all those lenders and more, here Bad Credit Auto Loans Application
That may not be exactly what you wanted to hear, but unfortunately, there are not that many lenders out there that will approve bad credit auto loans and then give the customer a "blank check" to buy a car wherever they like.
Even if you were able to get an approval from one of the lenders mentioned above or any other lender that was willing to give you a blank check, I'd be willing to bet that 98% of the time a dealer that specializes in bad credit can find you a better approval.
Most dealers will have anywhere from 5-35 or more lenders that they work with and get wholesale rates, so to speak, compared to the retail rates that a customer might be able to get on their own.
Hope this helps,