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In my time of assisting our lending partners I have seen a lot of different scenarios and a lot of different outcomes. Recently, I talked with a finance manager that had two customers. The first clearly had a better credit score, more stable income, and less bad credit history than the second. In the end, the second drove off with a car and are well on their way to re-establishing positive credit. The first is still without a car and at this point may be on their way to not being able to buy one at all.

What happened? Well, first off, this plays out over and over without, it seems, a way to prevent it. Both customers were contacted. The second customer was patient and diligent in providing all of the documents and information the finance manager requested. When it came to being a little flexible on things, they realized that they needed to get re-established before they could ask for the world. They were happy to do what it would take to make it work. “when I first got the application I knew this would be a rough one but the customer was open and patient with the process and eventually we were able to figure out a way to get them a car that they are very happy with.” – Finance manager. The first customer however, said they were not even willing to come down, despite being told they were approved, until the finance manager told them all of the terms of the auto loan. “Their usually isn’t a way to know exactly what the terms will be until we find out what car will work. Many times the lenders will want the whole deal structure and all of their documents faxed before they give us a structure at all. Not to mention that thanks to new privacy policies we are not allowed to discuss finance over the phone even if we knew.” So eventually the first customer sent their auto loan application all over the place. Now when you send an application in, finance managers will more than likely have to try to contact several programs to get an approval or the most competitive terms. If you send your applications to five or six finance managers and they each send your application to three or four lenders you are going to have excessive credit inquires on your credit bureau and may no longer qualify.

So, you need a bad credit auto loan, what should you do? Make sure you are dealing with a place that has a special finance department. These finance managers only deal with situations just like yours all day long. They know what they are doing and they have special programs for bad credit situations. Be patient and work with them. Understand that these are people too, just like you they have a job to do and a little bit of respect can mean a lot, especially when they get a lot of people that won’t give it. Also, you will want to gather up some important documents so that you have them ready when necessary. Proof of income, proof of address, Insurance info, some references and figure out what you have available for a down payment before you talk to them so you aren’t fumbling to figure this out over the phone.

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If you have bad credit, banks may require you to put some money down on your auto financing.  Banks may have a few reasons for you to put money down.  Probably the biggest reason for requiring a down payment is that the bank wants you to participate in your car loan.  If you put three thousand dollars down on a car, it’s more likely that you will make all the payments in fear of loosing your car.  Since you’ve already paid a big portion you will be more invested in your loans success than without money down.  If you’ve got bad credit, your track record already indicates that you haven’t paid on time before.

Second, a down payment may help the financed amount fall into place.  If the car you want is $15,000 and the bank only wants to finance $13,000 on the car, that means you will need to put $2,000 plus your tax title, license, and doc fee down.  Remember, if your credit is less than perfect, the bank may not want to finance the whole car value, this is not your dealerships fault it’s the banks setting the rules here.

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If you have a situation outside of the norm and you go to a regular car dealership for a loan then yes, it will be difficult. Most car dealerships have a finance manager that is only trained on how to finance good credit customers. It is usually more work to get a customer that has bad credit or a slightly different situation a loan so why put extra effort in to it? If you want to get the right kind of help with a car loan and you have a special situation why not go to a Special Finance Manager? All of the finance managers signed on with our program specialize in out of the norm types of situations so they are ready for it. Don’t waste your precious time on talking to any old shmo. Apply at Newstartautoloans.com

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The times they are a change’ in.  Just a short time ago, if the dealer was just a little resourceful, they could get most people an auto loan with bad credit.  As you may know, the tide has turned.  Those in charge of the loan dollars are hording their money.  We can debate whether it’s best for them later; either way it is hard to get the loan you need even if you have good credit.  You can imagine that with Bad Credit it is almost impossible.  What can you do?  Well first of all you need to have a plan.  Figure out what it is that you need to accomplish, figure out how much you can put down and approximately what you can afford per month.  Many people say well, I want a ten thousand dollar loan.  Ok,why, really this means nothing if you have a loan.  The terms of the loan could vary greatly depending on year, miles, amount of down payment, equity position, of course credit, and even model of car just to name a few.  You could have a ten thousand dollar loan at $330 per month or $220 a month just depending on two variables.  Can you afford a $ 450 per month payment?  If not let you finance manager know up front.  * Note since lending terms are more difficult for those with bad credit don’t expect to have the best terms right off the bat.  You need to earn your credit standing back over time.  The best way for you to do this is make payments on your car for over a year and then refinance.  Assuming you haven’t missed payments on a bunch of other things, you should qualify for a better rate.

Please take my advice when I tell you, don’t be demanding of your finance manager that will get you put on the bottom of the stack.  If you have questions just ask, bear in mind, not everyone is out to get you, yes car dealers have gotten a bad rap over the years but treat them with some respect and they will do the same.

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