Bad Credit Auto Loans

When you need a new car, don't let your bad credit stand in your way. Though you'll need a bad credit auto loan, which may be higher than standard loans, you can still save by comparing interest rates and negotiating with lenders.

Someone with bad credit will more than likely have a tougher time finding an auto loan, but it can be done. Lenders do offer bad credit auto loans. However they are usually not willing to take a great risk on a high priced vehicle if your credit has some warts. Until you have your credit back on track, consider a lesser priced auto that is very reliable.

Find the car you are interested in and try to figure out approximate monthly payments. This will be a good indication as to whether you will be able to make the monthly payments on your loan.

You should always get multiple quotes for your loan. One lender may give you a completely different quote than another. Sometimes, this is very subjective. Getting multiple quotes also affords you the opportunity to compare policies, rates, and the fees associated with the loan. Lenders fees can be substantial, so make sure to look out for that.

Tips on Saving Money

• Check out the car?s repair record, maintenance costs, and safety and mileage ratings in consumer magazines or online. Look up the Kelley "blue book" value, and be prepared to negotiate the price
• Buying from a dealer? Look for the Buyers Guide. It?s required by a federal regulation called the Used Car Rule.
• Make sure all oral promises are written down
• You have the right to see a copy of the dealer?s warranty before you buy
• Warranties are included in the price of the product. Avoid service contracts that cost extra and are sold separately. They almost never pay off
• Ask for the car?s maintenance record from the owner, dealer, or repair shop
• Test drive the car on hills, highways, and in stop-and-go traffic
• Have the car inspected by a mechanic you hire. There are services that specialize in going right to the lot to check out prospective cars. It's definitely worth the money
• Check out the dealer with local consumer protection officials
• If you buy a car "as is," you?ll have to pay for anything that goes wrong after the sale
• The Used Car Rule generally doesn?t apply to private sales

Take your time, do you research and even if you do have bad credit, you can save money. Don?t jump into a deal you are not ready for. It?s not worth it. You'll only damage your credit further.