Four Great Overlooked Sources for Bad Credit Vehicle Financing

Many borrowers with negative history on their credit report give up on their attempts to get car financing after multiple unsuccessful trips to car dealerships and banks. Being declined every single time, most think that getting car loan with bad credit is not possible. There are some options often overlooked by auto loan seekers that may help them to get behind the wheel of a new car or truck. Being approved for a bad credit auto loan is way easier than you may think, provided you have a steady income with some leftover money to cover your loan payments.Secured FinancingAre you a homeowner? If so, taking advantage of equity in your home may be the best way to solve your car financing problems. Pledging your home equity as collateral may not only help you to get approved for a loan or an equity line of credit, but also get some other great benefits: lower interest rates and tax deductions. Lenders are more eager to approve loans that are backed by real estate than any other kind of financing. This is probably your best shot to finance a vehicle with lowest costs and hassles.Buy Here, Pay HereBuy here, pay here dealers seem to approve everybody who can show a couple of recent paystubs. While for many people, especially for ones who just had their bankruptcy discharged, this may be the only option to get a car, there are few major drawbacks that should be carefully weighted. First of all, such dealers typically sell high-mileage older cars that they get at wholesale dealer auctions: reliability of such transportation is often under a serious question. Second, the pricing they offer is often at KBB high retail value or above and is hardly negotiable. Third, the interest rates are extremely high. And last, but not least: they all require a hefty down payment that typically covers a major portion of the price they paid for the car at the wholesale auction.Before you even consider getting a car from such a dealership, see if you can get a similar car for the amount of your required down payment from a private party. Check your local newspaper for classified ads and call up people who have cars for sale: you may get lucky to negotiate a good price for a similar car with no need for weekly payments.The Bank You Keep Your Savings InA bank or a credit union that you have an account open with may be surprisingly loyal to you. This is especially true of local institutions that you have dealt with for many years. They may extend the courtesy to you where others would not be able to. Always check with your bank first – you may get surprised what they may offer.Online LendersOnline bad credit lenders, popping like mushrooms after a heavy rain, are getting very competitive these days and may get you approved even with very bad credit. Checking online and submitting your application to multiple lenders may end up in successful financing. Should you explore this option, always make sure that you are dealing with well-established, legitimate companies to minimize the possibility of identity theft and online scams.