Bad Credit, Zero Down Car Loans? YES!

A Guide to Auto Lenders and Vehicle Financing

Unfortunately, a good lot of us are not able to pay for a car up front, as that would take a long time to save up for and many of us cannot wait that long because we would need a car right away.

Thankfully, there are actually many methods as to how you can get a car as soon as possible. Each method is different, which is why you should be aware of what each method entails and what it can offer you. If you are knowledgeable, you will be able to get the most out of your money and get the car that you need.

Here are a list of ways you can finance your car and all the information that you need to know about each method.

Getting a Traditional Auto Loan.

Did you know that a whopping 90% of people get the cars that they have now by getting an auto loan? An auto loan is usually much more convenient for people to use, because they don’t have to wait around and save lots of money for a car.

getting an auto loan

This way, they will be able to get the car as soon as possible once the money that they got for the loan is given to them. There are also lots of different auto lenders and finance companies that will offer people loans all over most areas, so they are rather easy to find as well and you get to choose who you will want to work with.

These loans are rather easy to apply for, however the question is do you qualify for a traditional auto loan? Generally, auto lenders will base their approval for your car loan application based on your credit score.

A lot of the time your credit score will determine whether you will be able to buy a car, particularly if you are looking to get financing from lenders.

Most traditional lenders will frown upon poor credit scores and may deny your loan request right away.

Thankfully if you have a fair or good credit score, you should have no trouble at all with getting a car loan from a traditional lender to be able to buy a car right away.

So, where does that leave all of the people whose credit scores are low? People with low credit scores still have a lot of options when it comes to financing themselves to get a car without having to take years of saving up money for it.

You can still opt to go to traditional auto lenders to apply for an auto loan, however if you get approval you may get charged with rather high interest rates in the loan compared to people who have fair to good credit scores.

Thankfully, you may be able to get around that by finding a traditional auto financer who specializes in offering loans to people who have bad credit, as they are usually more willing to give you a loan along with potentially much lower interest rates compared to the auto lender who doesn’t specialize in bad credit loans.

Try to Get a Car Lease.

If you are a person who has a bad credit score but you badly need a car right away, getting a car lease might be the option that you need.

A car lease is where you lease a car, therefore you are technically “renting” it for a given amount of time that you and the one offering the lease have agreed upon.

Get a Car Lease

Generally, leasing a car would be much mor affordable than renting a car, because renting doesn’t offer prices and may not include things such as insurance.

You may also have to return the car regularly whereas a car lease would allow you to keep the car in your garage until the leasing period is up.

A car lease comes with a lot of benefits for most people. For one thing, the monthly payments that you will make for a car lease are relatively low, just watch out for the interest rates that you will be charged.

However, you can still find a car lease with low monthly payments and low interest rates to get the most bang for your buck.

That way, you will be able to enjoy the car that you are leasing for the whole leasing period and just make sure that you are paying for the small amounts each time.

However, you have to be aware and decide if getting a car lease is right for you. If you just want a temporary car or want to be able to drive around a car that you want right away, then getting a car lease is a good option for you.

However, some people may not feel the same because when you are paying each month for the car, you are not paying to own the car but you are only paying to lease it, therefore once the leasing period is over you will have to return the car back to the owner.

Some people will feel like they are losing money if they are looking for a long term option, because the money that they will put into this won’t matter once they have to return the car.

Moreover, the person offering the loan may make the person, like you if you got a car lease, feel almost scammed.

This is because they will be able to make much more money than what the car is actually worth. Despite the low monthly payments that you are making, they will be able to lease the car again and again and charge varying interest rates depending on the client, therefore in time they will be able to make a lot and you may end up paying for more than what’s the car is worth after the leasing period is over and have to return it.

If you want a car lease, be aware that you won’t keep the car, so try not to get attached to it too much if you get one.

If you are looking for a way to get easily approved for a car lease, then our best tip for you is to get a good friend or a relative who has a good credit score to cosign with you on your lease.

Having someone with a good credit score sign your lease with you will give the person offering the lease peace of mind.

This is because they will be able to have someone to continuously pay for the monthly payments just in case you decide to stop paying for it. That way, someone will be accountable and they will not lose money.

Getting a car lease is the best option if you just need a car for awhile, like if you will be staying in a certain area or country for a few years.

However, if you are looking to own your car for a long time, we don’t recommend getting a car lease. It would be better for you to get a traditional car loan or try out the next financing option that we are going to talk about here.

A Buy Here Pay Here Car Dealership.

Going to a buy here pay here car dealership may be one of your best options when it comes to financing yourself to get a car, especially if you have a bad credit score.

You get to have the entire buying experience without worrying about your credit score getting in the way of approval. A buy here pay here car dealership can be seen as a saving grace to many people who are in dire need of cars but struggle due to their low credit scores.

Generally, these people are much more welcoming to you, even with very low credit scores, because they don’t look at your credit scores to decide if they should give you a buy here pay here loan.

They will rather find out about how much you make a month and what your history with your job is like, particularly how long you have been working there for.

This will help them learn if you will be able to pay them back confidently. Moreover, they will ask for some personal information, such as your phone number and address so that they will know where to contact you or find you to remind you about payments if it is late.

How it works is that the car dealership will be the ones to look for a loan for you, so therefore they will extend their credit to you to be able to get a car.

Keep in mind that you will be offered some of the second hand cars, however these cars are usually in pretty good condition and you could always give them a test drive to see how you feel about the car.

car dealership

Afterwards, the buy here pay here car dealership will hand you to the keys to the car once the processes are all finished and will just wait for you to make your monthly payments until you are able to pay them back.

The great thing about buy here pay here car dealerships is that you can look at the several that may be in your area.

A lot of them offer their interest rates rather competitively to get more clients, so you get to choose which one you like the best (keep in mind to always choose terms and conditions over low interest rates as much as possible).

This will help you get the most out of what you are spending for, because you will be getting a quality second hand car and be paying a surprisingly low amount for it too!

You may also get to choose the terms of your repayment, especially regarding the schedule of how long your monthly payments will take until you completely pay off the loan.

They allow you to choose a loan repayment term that is as short or as long as you would like. However, we recommend that you choose the shortest repayment period possible to avoid spending more than you should in the long run due to interest rates.

Depending on your needs, you can choose the right auto lenders or finance companies for you as long as you know all the information that we offered above.

Jessica James
Jessica has Worked in the Auto Finance Industry for the last 8 yrs, specializing in helping Her Clients and potential Car buyers get approved when they're dealing with Financial Difficulties on their Credit Reports.

She has helped Thousands of Customers find competitive car rates using all her industry knowledge!
Jessica James

Author: Jessica James

Jessica has Worked in the Auto Finance Industry for the last 8 yrs, specializing in helping Her Clients and potential Car buyers get approved when they're dealing with Financial Difficulties on their Credit Reports. She has helped Thousands of Customers find competitive car rates using all her industry knowledge!