If you need a vehicle, getting the financing you need with bad credit can be stressful. Not all lenders work with credit-challenged car buyers, and even if they do, they may still turn you down in some cases. So, where does Drivers Lane come in? We’re your first step toward finding a lender that's willing to work with you.
Financing a Car After Being Denied Credit: Some Tips
We aren’t lenders at Drivers Lane – we connect car buyers with bad credit to dealers who can help them get a vehicle. What we are is a link between you and a local special finance dealership. While we can’t give you an auto loan, we can offer advice on how to prepare yourself for the car buying process when you have bad credit.
Before you start filling out our car loan request form, make sure you understand these five things:
- Why you were turned down for an auto loan – Did you go to the wrong type of dealer? Or, was your credit score and income too low to meet the basic requirements? There are many reasons why a lender can turn someone down. It’s good to know why, because then you can see if it can be fixed.
- Prepare a budget – Know just how much vehicle you can afford. Online tools, like Drivers Lane’s car loan estimator give you an estimate on how large an auto loan you can get approved for. The important thing to remember is to not think about the type of vehicle you want, but rather the type of car you need as you may be limited in your choices when dealing with a subprime lender.
- Prepare for other expenses – In addition, you need to be prepared to pay for tax, title, and license fees and have a down payment ready. Expect to be required to put a minimum of $1,000 or 10 percent of the vehicle’s selling price down, whichever is less. If you can afford more, it helps you save money over the term of your loan.
- Consider a cosigner – In some cases, subprime lenders require you to have a cosigner to lower their risk. Your cosigner must meet specific requirements, and they’re essentially putting their credit on the line for you. It’s a good idea to ask someone about being a cosigner beforehand, in case the lender does require one.
- Be open-minded – You more than likely won’t get the car of your dreams when you finance with a subprime lender. Your vehicle choices may be limited, while you may also be given a higher interest rate. Remember, this is a stepping stone toward improving your credit.
Start With Us Today
At Drivers Lane, we specialize in connecting people with credit challenges to local dealerships that have the lending resources available to help them. The network of special finance dealers we work with spans the country, and there’s never any obligation to buy. You can take the first step toward your better car buying experience by filling out our free auto loan request form online.