The auto lending landscape is undergoing a change which may impact your ability to qualify for a car loan. Here's what's happening and what you can do if you need a car in this changing market.
The auto financing landscape is changing in 2018, and you may have already been turned down for a car loan. But, you still have options available. Now is the perfect time to get into a second chance auto loan before it's too late. We'll explain how - and why not waiting to buy should matter to you.
Get Financed While the Getting is Good
What is Second Chance Auto Financing?
When it come to getting an auto loan with bad credit, the type of lending you qualify for is determined by many factors - but they start with your credit score. If your credit is good to excellent, the other factors involved in qualifying for a car loan are likely to be minimal. If you're suffering with credit challenges, however, you're most likely in need of second chance financing.
A second chance auto loan is designed for people who have been turned down for a traditional car loan due to poor or limited credit. If this is the case with you, the first thing you should do is determine why you were turned down.
Do you have a subpar credit score? Are your credit reports full of holes and missed payments? Have you recently experienced vehicle repossession? Do you have steady income? Knowing the reason your original loan application was denied, and knowing where your credit stands, can help you prepare for a second chance auto loan.
Preparedness is a key factor here because subprime auto loans have different requirements to be met. But don't worry - this is a good thing. Lenders use them to look beyond your credit score to really see what's going on, which gives them a better picture on which to base a lending decision.
Qualify for a Second Chance Auto Loan
The lenders that offer second chance auto loans are known as subprime lenders. These aren't lenders you can apply with directly, so you have to visit a dealership with a special finance department to work with one. To have your best chance of qualifying for a car loan with one of these lenders, bring the following documents with you to the dealer:
Finding Second Chance Auto Financing
With shrinking subprime auto lending opportunities, you may find yourself getting frustrated in the search for a second chance auto loan. But that doesn't have to be the case. Here at Auto Masters of Murfreesboro, we work with people in a wide range of credit situations.
Simply fill out our cost-free, no obligation auto loan request form, and we'll get to work. What have you got to lose?
Charles Higgins has been in the automotive industry now for over 17 years. He has built a career by helping people with unique credit situations get financing. Charles believes everyone deserves the chance to build their credit while driving a reliable vehicle. Contact Charles today for your all of your credit needs.