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At Auto Bad Credit our lenders have a guaranteed zero down approval for those with bad credit. .

The questions and tips below are to help you in securing a fair loan that will get you the vehicle you want while rebuilding your credit. I want to take a minute to review how most of the sub-prime auto lenders operate..

A sub-prime lender many times has the same parent company as your prime market lenders. Like many companies the larger banks will distribute their risk.

Lenders working in prime market will take on a percentage of high risk loans usually with a sister company. Bad loans become a write off for that company at the end of the year..

There are of course the other lenders who simply put do not have the backing of a major bank or finance company. That leads to their risk being covered in other ways.

Simply put your major banks and finance companies spread their risk out and charge higher interest rates. Those unethical lenders will significantly overcharge you on the vehicle you choose.

Some of the lenders partner with or own dealerships where you must purchase your vehicle.. While this is fine it is not okay if the dealer limits your selection to specific vehicles. This is something you want to watch for so let’s answer the question why lenders do this.

It all comes down to profit. Your less profitable lenders have no backing and you end up getting hit on both ends. By limiting the vehicles to those that quickly lose their value the lender and dealership is limiting their risk and able to overcharge for the vehicle..

If you see this run. Most in this economy of experienced difficult times. This does not mean you have to accept being overcharged on the vehicle you need..

Here are some of the most common questions we receive:

Will I be required to come up with a down payment and if so how much?

While there are lenders who require a 10-20% down payment there are many lenders who have a guaranteed auto loan approval with zero down.

* Will a sub-prime loan hurt me later to get better interest rates?

Not at all. In fact the opposite is true..

The fact is there are not a lot of choices with bad credit. Either you work with a buy here pay here company who rips you off or a sub-prime lender. Working with the correct lender is extremely important as you will get a fair deal and they will report your timely payments to the three credit agencies which helps to repair bad credit..

* Am I going to pay higher rates from a sub-prime lender?

Yes. This is one of the unfortunate truths about bad credit.

Most importantly you are able to purchase the vehicle of your choice and with on-time payments you may very well obtain prime rates with your next auto loan.

* Where do I find the reputable lenders that will guarantee my loan approval?

This is the most important question as not choosing the right lender will significantly increase your cost and not help you to rebuild your credit.

Reputable lenders who work with auto bad credit loans and guarantee approval can be found at Auto Bad Credit. .

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