Car Dealers and Bad Credit Lending Companies

It's no secret that bad credit has a negative impact on several aspects of your life. Many people from all walks of life can become subject to credit problems, and it can become a headache for years.

Bad credit is more common in recent times than every before, due in large part to the recent economic downturn. While it can make things difficult for some period of time, drivers with recent credit issues can indeed be approved for auto financing, IF they work with a dealer and/or lender who is spefically set up to handle loans for those with challenged credit.

While every car dealer probably says that it can get anyone approved no matter their credit score, most of them are blowing smoke, and they are just trying to get people in the door (even if they can't approve half of them). If you go to a restaurant that boasts the "World's Best Apple Pie," you probably should go ahead and assume that they can't back that claim up.

However, a select number of dealerships across the United States and Canada are fully capable of handling poor credit consumers. This is accomplished by having relationships with particular finance companies who are lending to people with damaged credit. These lenders are choosy about what dealers they work with, and they generally only establish relationships with top-quality car dealers and some in house financing car dealers who have a strong reputation. This relationship between bad credit lenders and the car dealers is beneficial to everyone: The car dealer sells more cars, the finance company closes more loans, and the consumer is able to get a reliable car despite having had credit problems in the past.

Increase Your Vehicle's Fuel Efficiency and Save Money on Gas

The rising prices of gas have become a serious issue that everyone is dealing with. Gasoline is a necessary part of our life, and it has become necessary to understand how to increase our gas mileage so that we can save money on fuel. Here are some well-known (and some not-well-known) ways that you can increase your car's fuel efficiency and save money:

• Drive more slowly: Decreasing your average speed from 70mpg to 60mpg on the highway can save you 2 to 4 miles per gallon on average.
• Accelerate slowly: Don't floor it when the light turns green. Accelerate slowly and burn less gas. Nothing sucks down more gas like frequent quick acceleration.
• Your car only needs a minute to warm up: Even though it might not quite be perfectly comfortable for you yet, only warm up your vehicle a minute before you begin your drive. Idling cars don't use much gas, but letting your car warm up a few minutes every single day will add up. Modern vehicles only need about 30 seconds to warm up before they're ready to go.
• Reduce drag: Certain things on your car can create massive wind resistance, which means your engine has to work harder to make your vehicle move at the same speed as if there was no wind resistance (or drag). An engine that works harder uses more gas. Keeping your windows up while driving minimizes the drag. When the windows are open, wind rushes into your car and slams against every flat surface, causing the vehicle to slow (which usually results in the driver unknowingly using more gas). Also, open pickup truck beds creative major drag. Consider removing your tailgate or installing a flat bed cover, so the wind doesn't get caught on the inside of the tailgate and create drag.
• Maintain your vehicle: It's a pain and it costs money, but keeping your vehicle maintained will constantly pay off via better gas mileage. Keeping your tires inflated to their proper pressure increases gas mileage. Changing your oil, oil filter, and air filter regularly help the engine run more efficiently, which uses less gas. Regular visits to your mechanic or car dealer to keep your vehicle in top shape will benefit you greatly in the end.

Car Financing For Bad Credit

The impact of bad credit on someone's financial future is unquestionably negative. Getting a car loan approval should be a simple enough task these days, however if you have past credit problems, car financing becomes increasingly more tricky. Many companies and car dealers claim to offer "guaranteed auto loan approvals" to everyone, but that simply isn't realistic and none of them actually can deliver on that promise.

One way to buy a vehicle is to look for online lenders. There are companies which are interested in car financing a vehicle for bad credit. If you meet their general guidelines and requirements, you will likely get approved. Approval for dealer financing is not guaranteed with these companies, but will help you to get a car loan more easily.

In the grand scheme of things, few car dealers even offer car financing for problem credit. With many dealers, there is a large down payment required and high interest rate. Additionally, approval is not guaranteed and making promises of that nature are a simply a way of getting customers in the door. If you have defaulted on a dozen loans, or monthly income is just a couple hundred dollars, then it is ridiculous to think that a dealer will approve you with no problem.

However, if you are like millions of Americans who have experienced some credit problems and are now on track to bettering your financial situation, there are a handful of dealers in most major cities in the United States that are in business specifically to help customers like you get approved for a loan. A down payment will probably be required, and your interest rate will likely be higher than someone with perfect credit. But the point is, you can buy a new or used car with dealer financing at these lots with in house finance specialists.

Finding Quality Bad Credit Car Financing

Are you determined to get a car loan regardless of your bad credit? Many people feel helpless and out of options when they know they have problems with thier credit, but there are ways to get a new or used car. Following are some pointers for you if you are seeking a car loan and you have had bad credit.

While a buyer may be subject to higher interest rates than a person with good (prime) credit, a bad credit (subprime) borrower does have some limitations and conditions they must follow in order to satisfy the automotive lending company.

Going directly to a dealership will often get you nowhere. Getting your loan application examined and processed from a specialty subprime company beforehand is a great way to make sure that your loan request gets handled only with a dealer who is seriously experienced and equipped to work with subprime customers.

Also, going to your local bank or credit union in search of a bad credit car loan may be a lost cause. Standard banks and lenders have very strict lending criteria these days, and they are hesitant to lend money directly to a person who has credit issues. That is why approved car dealer financing is the way to go for thousands of special finance customers every month. When your loan is processed and submitted to a local dealer financing specialist, you have the best chances of getting approved because a dealer who is fully capable of working your loan is the only place who will be working your loan (and they are the only place that should be working your loan). Instead of trying every car lot in town, or visiting numerous banks who will each run your credit report, apply online with a free car loan finding service and go to the place that will most likely be able to get you a car.