If you have a credit file that is less than perfect, obtaining a great deal on a car loan, or even getting approved for one at all, can be a challenge. There are a number of car loan bad credit offerings out there, and many of them are perfectly legitimate.
The unfortunate fact is that some less scrupulous lenders like to take advantage of a person with bad credit’s desire to get vehicle financing any way they can, offering them a car loan bad credit seems not to be an impediment to getting approved for, but that comes with some rather nasty strings attached. Here are a few examples of what you should be looking out for:
The Over-Priced Car Financing Package
There are some car yards that offer “no credit check” financing packages, but only on certain models of cars for sale in their lots. On the surface, this may seem like a dream come true to someone with less than perfect credit, especially since many of these dealers do not even require much in the way of money down.
The trick behind these car loans bad credit offerings is a simple, but almost ingenious one. The car you are purchasing ends up costing you triple, quadruple or even more than it would have done if you had bought it using a traditional car loan elsewhere. The huge mark up dealers make off good customers negates any losses they might occur on delinquent accounts, so these deals are great for the lenders, but awful for the consumer.
The “Change it a Little Bit” Approach
If you are working with a car loan broker rather than the lender directly, or a car salesman on commission, you may encounter an unscrupulous one who encourages you to fudge your income and expenditure figures a little, just enough to overcome any negatives and get you approved. The problem here is twofold; not only could you (not the broker) be accused of fraud should your little white lie be discovered, but you could also end up with a car you cannot afford as well.
