Getting pre-approved for ‘poor credit car financing’ when trying to purchase a car with bad credit, will help you get the best rates possible. Pre-approved auto loans also give you an edge during car shopping, providing you with the most options. Your car shopping experience can be focused on getting the best price on a car, rather than worrying about financing.
Why Pre-Approved Loans Are Better if you are going to purchase a car with bad credit:
Some dealerships would have you think that getting financing with bad credit is nearly impossible. Not so. By researching lenders and their financing packages, you can find near market rates (although you will still end up paying more for the car than someone with good credit).
By getting pre-approved, you also remove a barrier when negotiating the price of your car. With a blank check in your hand, you can buy from any dealership or person. Sellers are much more willing to go down in price in order to seal the deal.
Start By Finding A Good Sub Prime Lender
Most financing companies deal with prime and sub prime car loans. So start your financing search by asking for loan quotes from several different lenders. If you have no idea who to look at, start with recommended sites.
When you ask for quotes, consider all possible terms. For example, selecting an adjustable rate loan will give you a lower initial payment than a fixed rate loan. Buying from a dealership will also get you better rates.
Look at fees and closing costs, not just fees, when comparing car loans. The APR number will give you the overall cost of the loan, a helpful number to use. If you are planning to refinance, lean toward a low application fee loan with slightly higher rates. This can save you money in the long run when you purchase a car with poor credit.
Online Application Speeds Up Car Loan Process
Car financing companies have developed online loan applications to save time and money. By having you enter your basic personal and financial information, lenders can limit the number of personnel needed to process your loan.
As a result, you can receive a blank check for you car purchase in five to seven days. You will also receive your loan contract at the same time. When you are ready to purchase your car, you simply sign both the check and loan contract.
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