Dealer Financing for a Bad Credit Car Loan
Most likely, if you have poor credit you will only get an auto loan if you go through a dealer.
Bad credit car loans, though easier to get, represent limitations as to whom you can borrow money from. Most banks and credit unions will not issue an auto loan to someone with poor credit. The risk that you will default is too great for a regular bank or credit union. There are loan brokers who can work out a deal, but you are most likely to get bad credit auto financing from an auto dealer. Most dealers are equipped with special lender relations that allow them to help you work out a loan.
Getting a bad credit car loan from a dealer
Most dealers will try to work out an auto loan, no matter how bad your credit it. This can be a great boon to you as you search for a car loan with poor credit. Dealers assume the risk of your bad credit by helping you get a loan with specific lenders who work with people who have bad or insufficient credit. However, you should be prepared to pay a higher interest rate for such loans. The good news, though, is that if you get your credit in order you can refinance to a lower rate with a bank or credit union a year or into your loan.