Saturday, March 3, 2012

Special Financing For Bad Credit

Looking around the internet, there are a lot of contradictory information about special financing for bad credit. It's hard to know exactly what options you have. Some sites claim you'll have to put money down and pay an interest rate. I begs to differ. I am here to tell you that most Internet sites are run by people who have no experience in the car or working in finance second chance.

I do.

I can tell you that the most common mistake people make when they have bad credit will a dealer for another attempt to get approved. If this is what you are doing, then stop now. What you are looking for can not find through the doors of a car dealership. Car dealers are no different from your local furniture store, which sends its request for credit to a lender for a loan of furniture. They are just intermediaries with something to sell. If you have good credit, but look at other options outside a car dealership.

Dealers make money on loans. Most people do not know it. Marked interest rates as it does in the selling price of the car. If approved by 9%, which is reasonable for bad credit car finance then you will probably be told a higher rate. They will try to get you to agree to pay 12% or more. The difference in the rate of interest equivalent to profit for the distributor and a commission to the director of finance.

Your best bet is to ignore the financing of dealer and get your loan approved online. You can compare the offers of loans for special finance car online and select the best option for you, without having to commit to something or someone is trying to talk you into anything.





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