Get an Auto Loan with Bad Credit and No Down Payment in Three Simple Steps

If you need a car but have bad credit and no money for down payment, you may feel like you are out of luck. No car dealer is even going to be willing to talk to you about buying a vehicle if he knows that you will not be able to qualify for the required financing. Anyone who has been through the process of purchasing a car or truck knows this. You find the perfect vehicle, you negotiate a price, and then BAM! You cannot get the right loan through the finance department. Game over. Not so fast. You can get an auto loan with bad credit and no money down. You just need to change your approach a bit…Step 1: By Pass Dealership-Sponsored FinancingIf you always encounter problems after finding your car or truck of choice because the finance department rejects you due to bad credit and/or no down payment, the simple response is to by-pass this step entirely.Few people realize that auto dealer-sponsored financing is not a requirement for purchasing a vehicle. People simply show up at the lot, pick a car or truck and then get financing. However, you don’t need to use that method. Instead, you can secure auto financing before you purchase a vehicle though a private online lender.Step 2: Using a Private LenderUnlike lenders at auto dealerships, private lenders, who are often found online, work with borrowers who have poor credit on a fairly regular basis. This lender will work with you, knowing your bad credit, and let you know how much you can afford given the payments you want to make each month. They will evaluate your finances and your credit score and then issue you a line of credit for purchasing your new vehicle.Step 3: Buying Your Vehicle with a Private Auto LoanThe line of credit offered to you by a private auto loan lender is as good as cash to the dealer. Once you have found the car you want and have negotiated a price, your private lender will cut the check to the dealership and they are out of the picture. Unlike the traditional way of securing auto loan financing, which allows the dealer to inflate interest rates for his own benefit and pocket cash down payments, using a private lender will give you the control.Three Simple Steps to Getting a VehicleThe problem that most borrowers with bad credit encounter at auto dealerships revolves around the fact that the dealer is trying to make as much money as he can from the sale. When he smells bad credit, he will use that as leverage to make you pay more, either in down payment or interest, so he can pocket the difference. For these reasons, using a private online lender in order to secure an auto loan before you go shopping for a new car or truck is the best way to avoid being swindled.Borrowers with bad credit and no down payment are no longer at a huge disadvantage when shopping for auto loans. By following the three simple steps outlined in this article you will be well on your way to owning a new car or truck.