Guaranteed Auto Loans

Bad credit car loan shoppers generally start by visiting used car dealers first. This may not be the best idea especially if they are looking for guaranteed auto loans.

If you have bad credit and are looking for guaranteed auto credit, chances are that when it comes time to buy a new car you will probably start by visiting used car dealers, either online or by driving out to the lot. We're not sure why this seems to be the tendency. The fact is that if you have bad credit, you are more likely to an auto credit approval at a new car dealer that specializes in bad credit financing, than you are at a used car dealer.



The main reason for this is that most of the national bad credit auto lenders that deal in guaranteed auto loans only partner with new car dealers or very large independent used car dealers. So if you visit a franchised new car dealer, more often than not you will have more lenders competing for your auto loan. It is true that, as the saying goes, when lenders compete, you win.

So why do most lenders offering guaranteed auto loans only do business with franchised dealers? Franchised dealers not only have passed a rigorous approval process by one of the OEM's (manufacturers such as Ford, Toyota or General Motors), each month they have to maintain certain levels of working capital, (money in the bank required to maintain their business). Used car dealers are no under such scrutiny. In addition, franchised car dealers also are required by their franchise agreements to have repair facilities on site. This means that in addition to performing warranty work and maintenance on new cars, most of them also perform standard maintenance on their used cars before they are offered for sale to the public.

Since not every franchised dealer is able to accommodate people with bad credit, it is important that you find one that does. Our site is dedicated to helping people find local car dealers with the lenders in place to offer guaranteed bad credit auto loans and accommodate a wide variety of credit situations. Most of these lenders specialize in a small segment of the subprime auto lending market, for example:

• First Time Buyer and No Credit Car Loans
• Bankruptcy Auto Loans
• No Money Down Auto Loans
• Low Income Car Loans

To summarize, if you have bad credit and are looking for guaranteed car finance to buy a car, chances are that you will get a better car and a better loan if you visit a franchised car dealer that specializes in helping people with bad credit, rather than from a local used car dealer.