October 3, 2023
Bad Credit auto Loan

Is this you? – You need a new car, your credit is not the best and you are trying to stay within a budget. If this is you, have no fear-sub-prime financing is here. With so many lenders and everyone vying for your business, how do you know who to pick? It’s actually pretty simple. Here are a few rules when deciding on whom to go with.

NRAL dreaming of a car

  1. Does the lender offer a Zero Down payment option?
  2. Has the lender been in business for over 20 years?
  3. Does the lender consider the type of payment you can afford?
  4. Does the lender go the extra mile and help you find the perfect vehicle?
  5. Is the lender available to you after your deal is closed?

If you need help finding the right lender let us know, we’ve got a great one we can turn you on too.


When to Use Dealer Finance

Going to dealership and finding your vehicle on your own is okay if you want to pay a bit more. Dealers like to add what is called “back-end” products that will often inflate the cost of the vehicle. Make sure you read the fine print if you choose Dealer financing. Dealers will often shop your deal around to different lenders and let you take the vehicle home. Sometimes they can’t get financing with bad credit and they ask that you bring the vehicle back. Dealers will most always ask for a down payment for the vehicle.


Budget for your Bad Credit Auto Loan

new car time

When considering a bad credit auto loan make sure you budget an affordable amount. A brand new luxury car sounds great and all, but the payment could wipe you out. A general rule of thumb is to budget no more than 15% of your monthly take home pay and remember to budget your car insurance payment as well.  Also, take into consideration the costs of operating your vehicle. Try to budget gas, maintenance, and the unexpected costs of repair.


Get Pre-Approved before you Shop-

With a bad credit auto loan you have choices. One of the best options is to get pre-approved before you start searching for your vehicle. Imagine walking into the dealership knowing that you are already approved to purchase a vehicle. Like a cash buyer, you can negotiate everything and it makes the financing aspect so much easier. Do your homework on the internet and call a few different lenders. See if they fit the criteria 1-5.


What to expect when applying for a Bad Credit Auto Loan

Your rate is going to be higher than someone with good credit. The lender may ask you for pay stubs, personal and professional references, bank statements and other supporting documentation. Don’t worry this is normal and by providing these items in a timely manner your funding process could be quick. Remember, the lender is willing to lend you money for the vehicle and they need to ensure that you have the ability and intent to pay it back. Most want to lend you money, so cooperation and accurate information is necessitated.


At the end of the day….

Give New Roads Auto Loans a call as they are your best source for a bad credit auto loan. Visit the website at www.newroadsautoloans.com . Check out all of the reviews, watch the video, and read the credit tips as well. It will help you make an informed decision when picking the right auto finance company for your bad credit auto loan.


See you on the Road!