A Little Known Secret in the Car Business About Bad Credit Auto Finance
Bad credit is really frustrating. What’s even more frustrating is the feeling and the awareness that a car dealer or loan company seems to be taking advantage of you past problems and need to get approved for your loan. You know you can make the payments, if you can just get that loan approved. You don’t want to drive an old car, you want something dependable that looks good. If only you could erase those mistakes on your credit bureau and start fresh.
Well, getting a new credit bureau isn’t going to happen.
You can however, avoid the whole circus of dealing with dealer finance departments altogether. By using this little known secret, you can get approved easier, get approved for more car, have lower payments, eliminate the need for a down payment and of course, a lower interest rate.
You probably have no idea of this… car dealerships mark up the interest rate on a loan to make more money. Just like they can mark a car up a few thousand dollars to make a profit, they can increase the amount that you pay in finance charges even more. The extra money that they get you to pay in higher payments and a higher interest rate is profit for them and less money you get to keep each month. It doesn’t sound fair, does it? It is the truth though.
Let’s say you get approved for a car loan at 10%. That’s a reasonable rate if you have credit problems. What isn’t reasonable is when the dealer sees your desperation to get approved and tells you that, instead of 10%, your rate will be 15%. That extra 5% is an easy sale for a car dealer and results in quick profits for them, higher payments for you.
The way to get a lower rate, lower payments and a no down payment car loan for bad credit is to deal with a company directly that finances cars for people with bad credit. A company that will help you, not hurt you, and look out for your best interests.