Picking a Good Dealer That Doesn’t Mind Your Bad Credit

December 21st, 2015 by

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For anyone in the market for a new or used vehicle, having a bad credit score can seem like an insurmountable hurdle. While one might expect his or her options for obtaining a loan to be slim, the opposite may actually be truer. These days, there seem to be hundreds of bad credit auto lenders waiting for consumers with sub-par credit to walk through the door.

Many of these businesses, if not most, are perfectly reputable and offer an excellent service for those struggling customers who need an auto loan. As with any market, however, there are certain things to watch out for to avoid overpaying or agreeing to an unfair loan arrangement. By following a few simple tips, you can know what to look for in bad credit car dealerships, and how to choose the one that’s right for you.

Find a Varied, Experienced Lender

If possible, it’s best to look around for auto financing from a dealer, bank, or credit union that offers multiple types of loans – from long term to short term, and on new and used vehicles. This shows not only a comfort and professionalism with negotiation agreements, but also an ability to be flexible and work with the borrower.

It’s also best to try and find a lender that is well established and well regarded in your community. Look at the lender’s online reviews and try to gather what you can about how they operate and what you should expect.

Don’t Settle for Bad Customer Service

A financial agreement is often a long relationship built on trust. When you agree to a deal with a lender, you are essentially creating a connection between you and that lender. That being said, it’s important to pick a lender who you can work with easily and who offers excellent customer service.

Look around online at their social media presence and see how responsive they are to customer complaints or comments. Check their customer service policy on their website, or go in person and talk to a representative if possible. If it seems difficult to get in touch with the lender, then maybe it’s best to consider another source.

Depending on your financial situation, you may also want to seek out a lender that works with clients who have faced bankruptcy. Whether or not you have faced bankruptcy yourself, the very fact that the lender will work with these clients should speak to their understanding and willingness to negotiate when it comes to borrowing.

Transparency is a Must

You’re not going to a lender to play games, nor to have to go through undue detective work. The lender should make all of their terms and requirements clear and easily accessible, from loan amount caps to mileage or age restrictions – all reasonably priced compared to nearby competitors.

A good lender will offer educational materials on the lending process and offer sound, unbiased financial advice. Avoid lenders who seem overly eager about making an agreement or who seem like they are withholding information from you. Everything should be laid out in the open in a relationship of mutual trust.

With these simple tips in mind, you’ll secure that bad credit auto loan in no time – and you won’t regret doing so for years afterward.