Bad Credit Car Loan - Bad Credit new Car Loan - Auto Loan

Are you trying to figure out how to get a car to replace the clunker auto that died ?

It can be like a catch 22 when you have a job but can't get there to earn a living. Borrowers with bad credit have to make a larger down payment. They will also get nailed with a higher interest rate.

If your credit is totally horrendous you may not be able to get a loan or you might have to come up with more than 50% for a down payment. There are some legal limits determined by the state that you live in. Sometimes you can trade in an automobile or truck and get a short term loan with a very high interest rate.

A lot of time the people with bad credit can get a loan with a large downpayment in the area of 8% - 19% and must pay it off in a shorter time usualy in less than 5 years
So, if your credit was good the interest rate would be lower and you could borrow for 5- 7 years.

The payment can be quite high but if you can handle the nut you can improve your credit quite a bit. Sometimes car and truck dealers who deal with the banks take on some of the burden of the loan. In some rarer cases the dealer finances the loan backed up with a general business loan from a bank for themselves.

There are some real scams out there where dealers know that customers are desperate and sell a car worth $5,000.00 for $9,000.00 and grab a big down payment with a high interest rate, so that in the end the customer ends up paying 4 or 5 times what the car is worth in 3 years.

These people are like vampires and you have to be educated about the actual market value before you buy a car.

Use the Kelly Blue book to find out what a car is worth and figure a $200.00 - $500.00 profit for the car sales company depending on the market value of the car.

You could also be standing with the salesman and get on your cell phone and call a pal or relative at home and ask them to go online and give you the Blue book value of the car that you and the car salesman are looking at.

That cuts down on the bulls**t from the salesman.

The fact is if the salesman thinks that you are desperate you will get screwed.

Have a long list of car dealers in hand and don't be afraid to let the salesperson "accidently" see your list.

That will put you back in the drivers seat as far as negotiaitng.

Remember, you want a car and they want to sell a car. If you walk away they get no profit.

Two key points here to remember.