Do you have really bad credit and want to drive out in a new or used car in the next day or so? Have car dealerships or local finance companies turned you down for car credit? Maybe the dealer says that he can get you approved, but only on a certain car and with a big down payment? If so, this article is for you.
From years of experience, I can tell you that the biggest mistake that car buyers make when it comes to getting a car loan with bad credit is this... they rely on the car dealership to tell them whether or not they can get approved.
The fact is, it's easier to get approved with a company that specializes in bad credit auto finance if you work with them directly. Indirectly applying to a finance company through a dealer finance department puts you at risk of paying a much higher interest rate. Why? It's because dealerships mark up interest rates just like they mark up the price of the cars.
Bet you didn't know that, did you?
Good credit customers that could get approved to pay 4% are commonly told by dealerships that the lowest rate available to them is 7%. The 3% difference is profit for the dealer.
Bad credit customers (good people, though) that could get approved at 9% are commonly told that they have to pay 12% or more. The difference is profit and commissions for the dealer, which results in MUCH higher car payments for you. It doesn't seem fair, but it's a reality and negotiating interest rates with a car dealer is very, very difficult especially if you've got poor credit.
If you want to get approved for a car loan and have really bad credit, the easiest way to get approved is to avoid the dealer finance department and arrange your own financing.
For a directory of lenders that will work with you directly in your local area, visit http://mycredittree.net If you would like to compare offers from multiple lenders that specialize in bad credit auto financing with only one application, visit http://fundmyvehicle.net I hope you enjoy your new car!
Jason Lanier is an EzineArticles.com expert author specializing in credit problems.
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