Bad Credit Car Loans Madison

If you have a credit score over 640 or more and a fairly extensive credit history, you should be able to purchase a vehicle with a traditional prime or near-prime auto loan pretty much anywhere in Wisconsin. But even if this is the case, you should still do some research on the internet. As an example, Consumer Reports has an excellent web site that enables you to view the repair histories of most cars, so that you can see how the vehicle you’re interested in compares with the other cars or trucks in its class.

Madison Bad Credit Car Dealers

If you have less than perfect credit, however, you may want to hold off driving around Shorewood Hills (or Maple Bluff, Monona, Middleton or Verona). Here’s why: the bad credit car loans Madison Wisconsin buying process is much different. And just as the bad credit buying process is different, so is the dealer that can help you with a bad credit car loan.

The fact is, many Badger State dealers choose not to deal with subprime lenders. Subprime loans require more effort than regular loans in the sense that dealers are responsible for more documentation and for making sure that the documentation is correct as well as verifiable. If anything goes wrong in the documentation process, the contract is sent back to the dealer and the dealer holds the contract for the car. This means the dealer must collect the monthly payments from the customer and dealers do not want to do this.

As a bad credit car loans Madison Wisconsin buyer, it’s important to realize that just because a dealer happens to sell cars near a major freeway, or even the West Beltline Highway, it does not mean that dealer has the right kind of cars. A dealer’s new and used car inventory also has to be adjusted for subprime lending. Cars in inventory have to meet lender guidelines in terms of mileage and year. The used cars also need to be purchased at or below NADA or Kelley wholesale, since subprime lenders base their "advance" (how much they will finance) on these figures. New cars also have to be within a certain price range, since bad credit lenders are very strict about keeping your car payment within a budget range. Without the correct inventory, the dealer can’t sell any of the cars on the lot to subprime customers.

In addition to documentation and inventory issues, there is the large number of subprime lenders as well as the complexity involved with understanding the varying programs that they offer. Most subprime lenders have at least five “tiered” programs and each program can have its own set of requirements. Without a knowledgeable special finance department, keeping track of the lenders and programs is impossible.

The solution to the problem of finding bad credit car loans Madison Wisconsin is to go online. The best online sites have helped thousands of people in the Badger State with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. The best of these sites also has a network of affiliate dealers that specialize in bad credit car loans Madison Wisconsin and throughout the rest of the U.S.

Apply now for a Car Loan in Madison