When your credit is good car loan companies evaluate your credit report to determine which auto financing program you will qualify for. When you have bad credit, lenders evaluate the value of the used car. In other words they loan based on the collateral value. Every vehicle on our lot qualifies for a guaranteed auto financing amount based on its value.
Negative equity and bad credit don't mix well. To limit the risk on a bad credit auto loan companies prefer to finance an amount equal to the value of the new purchase. It is possible to finance a used car with negative equity and bad credit, but you should expect a higher payment than you currently have.
If you have bad credit, no credit, recent bankruptcy, or foreclosure a co-signer with a good credit rating will often help you to qualify for the best car loans, interest rates and loan repayment terms. The amount that you qualify for, however, will still be based on what you can afford.
The money down needed can be a combination of cash and trade equity. The actual amount needed varies based on your credit rating and vehicle selection. For example, if you're approved for a $15,000 auto loan and want to purchase a vehicle with a selling price above that, you would have to make up the difference with money down. We do have zero down auto loan programs, but we recommend that the car buyer cover the tax, title, and license fees with money down. When you borrow for the collateral only you will typically qualify for better auto loan interest rates and repayment terms.
Our guaranteed credit approval program applies to everybody, regardless of your credit profile, whether you have a bankruptcy, foreclosure, repossession, no credit, get paid in cash, are unemployed or self employed you will qualify with our Guaranteed Credit Approval program.