. Do people with very bad credit have any options when it comes to getting a car loan? You bet they do! There are many different ways you can go about obtaining a car loan even if you do have very bad credit.
One of the best options you can have is with a car dealer who specialized in making car loans to people with very bad credit. They usually advertise with slogans like Everyone approved or No one turned away. These companies are reputable and serious about getting you into a new car. Well, it wont really be new.
Most dealerships like these carry older model cars with higher mileage, but they are often good cars and can at least get you on the road even with very bad credit. The way they work is that you apply for a car loan and they usually finance the loan themselves. Your interest rate will be high and you will make your payments directly to them. Your car is your collateral so if you dont make the payments, the car will be repossessed.
People with very bad credit should probably look to these companies first for a car loan rather than try to go with a bank or a finance company. These dealerships specialize in situations such as these and theres no story they havent heard. That means that no matter how you got into the situation with your credit, you can still get a car.
Of course, another option for people with very bad credit is to have a co-signer guarantee the car loan. You and the co-signer will both own the vehicle. The loan is made based on their credit history so youll want to find someone who has good credit to offset your bad credit. Then make the payments on a timely basis. Otherwise, they are liable for the loan and will have to make the payments for you.