Liberty Auto Loan: Car loans for bad credit… The basic facts.

Who a car shopper gets a car loan from is as important as what car the person is going to get. After all, if there’s no financing, there’s no car. The search for the right lender is made that much more complicated by having to find car loans for bad credit. In these cases, bad credit can push a consumer into getting the financing through the dealership, which, all too often, comes with more costs and higher interest rates. Bad credit puts the brakes on any car purchase and the consumer has to take extra steps to make sure he, or she, is getting the best deal to fit within his, or her, budget.

Dealer financing comes with a bad rep. Since the financing arm of a car dealership is another step in the car sale where the borrower is subjected to more high-pressure sales tactics to up the purchase price. Yet, borrowers trying to get car loans for bad credit may have dealership financing as their only option. In spite of the bad press, the dealership financing department is not a haven for pirates trying to shake every nickel out the customer’s pockets. No dealership will finance a car purchase for someone knowing that can’t afford it – there’s no profit in it. But, the borrower must be on his, or her, toes in order to avoid paying more than he, or she, wants to. Negotiations are a part of every car sale and the finance manager is ready for it. The prospective borrower should be ready for it too.

Consumer advocates often advise car shoppers with bad credit to start at their own banks, or credit unions. By starting the application process at his, or her, own financial institution, the prospective borrower can benefit from the bank/customer relationship that already exists between them. In this case, the bank has intimate knowledge of the borrower’s ability to repay the loan. Where the borrower has a savings account, checking account, and makes regular deposits (such as paychecks), the bank can chart their ability to repay a car loan with reasonable accuracy and provide reasonable financing based on that information.

Lending specialists exist in abundance that rivals those of car dealerships. These companies may be general loan specialists while others deal purely in car loans. Some of these companies have even carved out a niche market in car loans for bad credit. While these loan sources offer someone with bad credit an option to dealership financing, they are a little harder for the consumer to get loan approvals from. Since these companies do not directly control possession of the car as do the dealerships that sell them, they assume greater risk since the property securing the loan is much more mobile than the assets in other forms secured loans, like houses. But, they do offer reasonable financing, and the closer a borrower rates to the non-prime lending category, the more likely he, or she, will score better interest rates on that car loan.

Who to borrow from can be a confusing matter especially for the consumer who has no one to reference in his, or her, neck of the woods. LibertyAutoLoan.com can help locate a car loan source for bad credit locally, or anywhere in the country through a network of affiliated car dealerships and lenders. When shopping is made easier, the consumer is more likely to spend money wisely. That’s the goal of LibertyAutoLoan.com – easy choices, wise decisions.
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