When your credit is not all that great, you may think that you are stuck either driving the old jalopy you have until it falls apart or just relying on your own two feet for transportation. However, even people who have way less-than-perfect credit can usually get a loan for an automobile if they go to the right dealership. Even though auto dealerships that offer financing for people who have bad credit are incredibly convenient, there are a lot of myths about these businesses that may keep you from stopping by to see if you could qualify for a car.
Myth: The only way to get a car with bad credit is through a buy here pay here program.
Truth: There are auto loans for people with bad credit that have nothing to do with a buy here pay here option. Even though the buy here pay here program is good in some cases because it allows for low down payments and flexible payment plans, the interest rates for these loans can be substantially higher, and it is usually best if you can get a traditional auto loan instead.
Myth: If you have bad credit, you can only get a used vehicle.
Truth: Just because you have bad credit, it does not mean that you have to be limited in the choices of vehicles you can obtain financing for. New vehicles usually have high market values, which means the car will easily stand as collateral for your loan.
Myth: Most bad credit car loans will require a huge down payment.
Truth: For whatever reason, there are a lot of people who believe that even if you get approved for an auto loan with bad credit, you will have to come up with a massive down payment. However, this is actually not always true. Your down payment will likely not be a lot different and your old car may stand good as a down payment on its own. What a sizable down payment may get you, however, is a lower-interest loan. Therefore, many people who have bad credit do choose to make a larger down payment upfront because of this.
When you take a look at facts instead of the myths about bad credit auto dealerships, you can see that these establishments may be well worth your time. If you would like more information about how to get a loan for a vehicle in spite of your low credit rating, find bad credit auto loans in your area and speak with a representative about any questions you have. You may not be stuck with your old vehicle or just your own two feet after all.