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Denied a Car Loan? Try a Bigger Dealership

By Ross Edwards
Wednesday, Jan 21 2009 12:34

Getting a car loan with bad credit has never been easy. It’s even tougher now than ever before.  Lenders are wary of taking risks on sub-prime car loans. But there is hope, and it lies in the large buy here, pay here dealerships.  

Buy here pay here used car dealerships have been the answer for car buyers with less-than-perfect credit for a long time. If you’re denied at a franchised dealership (one that primarily sells new cars) and need a car, you probably already know that a buy here, pay here dealership should be your next stop. 
But what you might not realize is that the size of the dealership you’re shopping at can be the deciding factor in whether or not you get a car loan. Special Finance reports that there is still money being lent out for sub-prime car loans, but it is going to the dealerships that have a lot of money, have been around for a long time, and are willing to pay higher interest rates.
If you’re denied a car loan at a smaller buy here pay here lot, don’t give up. You might find that a bigger dealership will be able to finance you for the same car loan that a small dealership couldn’t.

Image via J.D. Byrider.

Confused or unsure about some of the car loan terms used in the article? Click here for our Auto Loan Glossary.




1 comments on this story so far.

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Comment By: jhonyy on Fri, May 15 2009 at 6:52 PM
hi, what about , this I got layoff from a steady work company, on november 2008 and I currently geting pay by ny unemployment insurance , but still work four days or three days a week having pay in cash how can I get a loan with this i only have my bank account to probe my incomes tell me what to do I would like to buy a dodge charger not matter what ...jeje

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