Guaranteed Car Loan Approval in 6 Easy Steps with a Poor Credit History

Get Car Financing
Even with poor credit.

November 9, 2016

If you are in the market for a new car and have poor credit, you can expect guaranteed car loan approval by working with the dealership and factory finance team. Here's how it works.

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Step 1: Contact Sales Manager

Find the make and model of the type of car you want, then schedule an appointment with the sales manager. The sales manager is the start of the approval trail on your bad credit auto loan.

Step 2: Make an Offer

Test drive various vehicles and if you like one, make an offer. Be realistic in your expectations and don't be surprised if this takes several rounds of back-and-forth action between you and the manager to reach an agreement.

Step 3: Offer Down payment

Fill out a purchase and sales agreement. It's time to make things real by putting a down payment on the vehicle or writing a check. Most dealerships want a minimum of $1,000. If you offer a larger down payment, it will be easier for you to get the loan for the remaining amount.

Step 4: Going to the Finance Office

Your next stop is the business office where the finance manager will try to sell you an extended warranty, entertainment package and the like. At this point, the finance manager will tell you to go home and that they'll get back to you. This could lead to some changes in the deal.

Step 5: Get a Co-Signer

If you want to get approval without a very high interest rate, then get a co-signer whose credit rating is really strong.

Step 6 : Changes Needed for Approval

If you do not have a co-signer and your credit is poor, you may find that the corporate finance department wants you to have a bigger stake in the car before they give you the loan. You may be asked to put in another $3,000 to $6,000 to make the deal work. If you have a credit card with this much room on it, it's time to break it out and do this because it shows your commitment to the deal. You may even have to change models to a less expensive one.

Be patient, because you eventually will get approval, although there may be some noticeable changes from your first offer and the final approval. You may find the monthly payment is far over what you can afford, as your car loan rate will probably be in the 9 to 14 percent range.

If you really want to own the vehicle, there are sources like that will take care of the loan for you and your dealer. This is a bad credit car loan. You will likely find the interest rate to be higher than normal, but it is the price you'll have to pay to get the car.

The interesting part of a bad credit auto loan is that while the interest rate may be high, once you have worked through the payoff process, you will also be rebuilding your credit and credit score at the same time.

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