Finding Bad Credit Car Dealerships Near You

Get Car Financing
Even with poor credit.

By

Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - October 5, 2018

Often the most difficult part of trying to get approved for a bad credit auto loan is actually finding a dealership that works with bad credit car buyers. Finding bad credit car dealerships near you can be difficult because of the way that subprime lenders operate.

Understanding Bad Credit Lending

The majority of banks, credit unions, and other major lenders tend to only deal with customers who have good to excellent credit. If a borrower needs to finance a car with poor credit, they typically need to find a bad credit car dealer who works with subprime lender.

Subprime lenders have the ability to work with borrowers with lower credit scores because they carefully review applicants and look at factors beyond their credit scores. These lenders only work indirectly through bad credit dealerships. This means that a borrower can’t directly apply for a loan with them.

Instead, borrowers need to go to dealerships that have special finance departments. These departments specialize in helping people in all types of credit situations purchase new and used vehicles.

Finding Bad Credit Car Dealerships

Bad credit car dealerships allow people who wouldn't normally be able to finance a vehicle the opportunity to take out an auto loan. The trade off is that subprime interest rates are higher than average to compensate for the extra risk bad credit represents to a lender.

To make it worthwhile, it’s important to work with a dealership whose lenders report loans and payments to the major credit bureaus. Then, the bad credit auto loan won’t only get you the car needed, it also allows you to improve your credit score and reestablish your credit.

Be careful of car lots with claims of "100 percent approval" or "all credit types accepted." These places could be nothing more than buy here pay here dealerships, and many of them don’t report loans or payments to the credit bureaus.

The biggest issue is that special finance lenders don't advertise a list of dealers that they do business with. This can make it tough to find a local dealership that can help.

The Easiest Way to Find Local Bad Credit Car Dealerships

If the prospect of locating a bad credit car dealership seems challenging, we have the perfect solution. At CarsDirect, we have a nationwide network of dealerships that can accommodate almost every credit type.

We've also streamlined the process of finding a bad credit car dealership to make it faster and easier for you. If you’re serious about getting financed and getting your credit back on track, start by filling out our simple and secure auto loan request form today.

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


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