Finance Roll

Let us face the facts - everyone needs transportation. Unless you are in a big city where you can walk everywhere that you need to go, or take the bus, you might be looking for a new car, truck, SUV, minivan, or other vehicle to get you where you are going. But for those with bad credit, there are very few options for getting a quality vehicle that is worth your money.

Buy Here, Pay Here Scams

Lots of people with bad credit turn to the buy here pay here car dealership to obtain their vehicle. Although these lots seem like a good deal at the time, these borrowers who patronize this type of car dealership often find that just a few days or weeks down the road they are stuck with a rolling pile of junk and a big debt. Most buy here pay here dealerships require a hefty down payment on vehicles that may have major damage which is hidden from the buyer with smoke and mirrors tactics.

It is not surprising that the first thing a car dealer from one of these places will do when he shows you a car is to point out what a nice radio it has - this is a tactic to cover up noises in the engine that might alert you to trouble down the road. Further, these dealerships offer no warranty on the vehicles they sell - you purchase as is.

There are numerous complaints about these establishments. The cars they often have junk titles when they get them; the dealer applies for a new title, and (Voila!) puts the car or truck back on the market, knowing that the vehicle may have suffered severe water damage, or even been through a fire. Some of these vehicles can even be dangerous to drive.

Bad Credit Auto Lenders

You can avoid being scammed, however. There are lenders who finance no one but bad credit borrowers. There is a big niche in the market for this type of service, as many people have damaged credit due to the economic downturn the country has experienced in the past few years.

Instead of throwing your down payment into the wind with a disreputable dealership that is out to rip you off, you can apply for a bad credit automobile loan with a lender who services people just like you. You should be aware that you may pay slightly elevated interest on any loan that you take out with bad credit. These bad credit automobile loans will help you to rebuild you credit score, however.

Online Lending Options

You might want to shop online for your bad credit automobile loan. Online lenders have more competition than those in your hometown, and therefore they generally have lower interest rates and more flexible repayment terms. Further, you will have the ease of applying completely online for your bad credit automobile loan, including being able to sign any signature documentation electronically.