For bad credit customers the dealer that is chosen can often be the difference between driving of the lot in a new car and having a loan rejected.
Good versus bad credit financing
At AutoNet Financial, we know that there are innumerable web sites out there that will tell you the best way to approach a car purchase is to secure financing before you visit the dealership. With conventional financing, this might be a good idea. With bad credit car loans, however, it can often result in an unneeded credit denial.
The D word
Denial. It’s the last word that anyone shopping for a car wants to hear after applying for credit. For bad credit car customers, especially, the more applications you submit, the lower your credit score can go based on the number of inquiries that are generated per application. Since a “turn down” from a lender is the last thing most customers want, you need to know that there is a way to avoid many of these denials. One way that can make a difference is the manner in which your application is submitted to lenders.
The approval process
Here at AutoNet Financial, we know that when you submit an application directly to the lender, it’s a very simple process. Once you submit the application, the lender does a quick study and, based upon your FICO score (credit score) and the information in your credit report, the lender makes a decision. You then receive either an approval or a denial. The entire process is, for the most part, cut and dried. If your application is turned down, there is no appeal process.
Making the most of a bad credit situation
If you have bad credit, the first part of this process is pretty much the same when you visit a car dealer. You fill out the application, the dealer submits it to one lender in particular or a number of different lenders (depending on your credit situation) and the lenders then inform the dealer of their credit decisions.
Even though you may not realize it, something different has already happened. Once you filled out the application, you were “interviewed” by the special finance manager. This person has probably had hundreds of conversations with bad credit customers. Based on experience, the manager knows which banks to send your application to. Not only does the “special fi manager” know where to submit it, he or she probably has a relationship with most of the subprime banks that the dealership uses.
If the bank turns down the loan and the manager sees some special circumstances in your background based on the interview, the person who made the credit decision at the bank will receive a call from the manager to “rehash” (go over) the deal. In many cases, this conversation will result in an approval or at least a “conditional” approval based on more money down or, possibly, a modification in the type of vehicle that will be approved.
In the end, you may not get exactly what you wanted when you first stepped through the front door of the dealership, but any kind of approval is better than a rejection. After all, the idea is to re-build your credit – a process that, sometimes, requires many small steps instead of one giant step in order to accomplish the objective of rebuilding your credit.
The Bottom Line
At AutoNet Financial, we have helped thousands of car buyers re-build their credit while driving a new or low-mileage quality used car. Our nationwide network of affiliated dealers specializes in bad credit car loans, thus eliminating the need for our customers to spend hours trying to find one. Our web site, www.autonetfinancial.com, has calculators and a resource page to educate you about the buying process. When you’re ready, our secure auto loan application can be filled out in the comfort and security of your home. Remember, at AutoNet Financial, we are partners with you in “rebuilding America’s credit”.
