Buying a Car with Special Financing

You need a car, but you don’t have the cash to buy it. That’s okay, not many people do. The real problem occurs when you’ve applied for a car loan, or maybe several, and your applications are met with “no” at every turn.

Perhaps you’ve sought financing at a car dealership, a bank, a credit union – or possibly all – only to be denied a loan. The reasons vary; you may have bad credit, no credit, a bankruptcy, or a repossession. Regardless of your credit situation, you need a vehicle and deserve to buy a car you really want. Although it may seem you don’t have any options, there is hope. You’re likely a candidate for special financing.

Special finance loans, also known as subprime loans, are offered at a higher interest rate by auto finance companies as a second chance to those who don’t qualify for standard loans. These special loans are typically required for those with a credit score of 700 or less. The rates for special finance loans are higher because the risk to the lender is higher as well. While borrowers of subprime loans can expect to pay a higher APR depending on their credit score, the good news is, they can also expect to drive a car off a dealership lot.

If you’re considering buying a car with special financing, there are some things you’ll want to think about. First, determine how much you can afford with a car loan calculator. With this information, you can get right to the business of finding a car you can afford. Next, check your credit score so you know where you stand regarding financing. If your score is considered low, you can apply for a special financing loan online with and before you visit the dealership. You’re much more likely to get the car you want if your financing is set before approaching the dealer. Use these tools and make your next car buying experience a positive one.

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