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.