Written by: Ashley Fricker
Edited by: Lillian Guevara-Castro
If you find yourself in a situation where it will cost you more to repair your car than to replace it, you may be wondering, “How can I find bad credit auto loans near me?”
Auto loans can be a challenge for bad credit borrowers. Despite the fact that roughly 85% of newly purchased noncommercial vehicles in the US are financed, finding a willing lender isn’t always easy.
Fortunately, options exist for bad credit auto financing so you can stay on the road in a safe vehicle.
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Nationwide Auto Lending Networks For Bad Credit
While it may seem like getting a bad credit car loan would be easier through local channels, most borrowers with poor credit find that national lending networks take the stress out of the process. Nationwide lending networks allow you to apply with several lenders at once, meaning you’re more likely to get approval without waiting.
Nationwide lending networks also tend to partner with financing companies that specialize in bad credit clients. This means you won’t just be more likely to get a yes, but you may be able to choose better terms with one lender versus another. These networks pair you with local dealers and direct lenders, so you don’t have to do the legwork.
- Network of dealer partners has closed $1 billion in bad credit auto loans
- Specializes in bad credit, no credit, bankruptcy and repossession
- In business since 1999
- Easy, 30-second pre-qualification form
- Bad credit applicants must have $1500/month income to qualify
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| 3.99% – 29.99% | 1999 | 3 minutes | 9.5/10 |
Auto Credit Express has been in the industry for over 20 years, building its reputation through four core values: help others, do the right thing, bring the right energy, and win the fight fairly. The company is a giant in the bad credit auto loan market, partnering with more than 1,200 dealerships and lenders across the US and Canada.
The application form takes just three minutes to complete, and you can expect to receive a call with a preapproved auto loan about 10 minutes after submission. The car dealer partner or a representative of an Auto Credit Express partner finance center will invite you to meet and review your loan options.
In many cases, borrowers can secure bad credit financing and drive away in their new car the same day.
- Free, no-obligation application
- Specializes in auto loans for bankruptcy, bad credit, first-time buyer, and subprime
- Affordable payments and no application fees
- Connects thousands of car buyers with auto financing daily
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 1994 | 3 minutes | 9.0/10 |
Car.Loan.com Auto Loan has been around since 1994, providing bad credit auto financing options through a curated car dealer network. All you need to get started on the process is your name, email address, phone number, and date of birth. From there, Car.Loan.Com works to match your finance application to one of the dealers it partners with.
The bad credit auto loan providers that Car.Loan.Com works with typically only need to verify your income, a stable residence, and a valid driver’s license to make an offer. While these lenders do check your credit score, Car.Loan.Com’s network of dealerships looks beyond the score, specializing in borrowers with poor credit.
The site also provides tools, including a loan estimator and payment calculator, to help you find out which kinds of loan offers you may qualify for and what your payments are likely to be.
- Loans for new, used, and refinancing
- Queries a national network of lenders
- Bad credit OK
- Get up to 4 offers in minutes
- Receive online loan certificate or check within 24 hours
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 2003 | 2 minutes | 7.5/10 |
myAutoloan.com sets itself apart with a broader collection of lenders in its network. The MyAutoLoan.com network provides auto financing options for both new and used cars and refinancing options on auto loans. The company doesn’t operate in Alaska or Hawaii, so borrowers in those states won’t have access.
It’s free to apply, and MyAutoLoan claims that its lender network offers some of the lowest interest rates in the industry. This particular trait is especially important for people seeking a bad credit auto loan, since one of the major issues for any borrower with a low credit score is high interest rates.
The company leadership includes entrepreneurs with over 50 years of experience in finance and eCommerce solutions and the connections they’ve made work to benefit their customers in a big way.
Possible Dealerships Near You That Approve Bad Credit
In addition to lender network options, several nationally-owned dealerships offer good terms to bad credit borrowers seeking an auto loan. These dealerships allow you to start the process online by filling out electronic forms and searching inventory before meeting with agents in person to discuss terms and get your car.
4. CarMax
CarMax is massively popular across the US due to its aggressive ad campaigns and dedication to making the car-buying experience simple and stress-free. CarMax allows you to do the majority of the transaction online, in the comfort of your own home, without any dealer pressure.
You can begin by looking over its online inventory, sorting your options by make and model, or by lifestyle, budget, or popularity. You can reserve your car online while you submit forms for auto financing preapproval.
Car reservations hold for seven days, and once you’re preapproved, you can visit the dealership and finish the deal. CarMax even makes it easy to have your car shipped to the CarMax car dealer nearest to you if it’s in another part of the country.
5. DriveTime
DriveTime operates as both the dealer and the lender allows DriveTime to make the auto financing process easier on its customers. Since its salespeople receive a salary, you don’t have to worry about being pressured by commission-driven agents. Best of all, the 12,000+ preowned vehicles are all accessible online, no matter which DriveTime location they’re in.
DriveTime lets borrowers customize their car loan by tweaking the different variables, including the interest rate and down payment to help make the monthly payment more manageable. The company boasts 99.9% approval odds on its auto loan products and works with bad credit borrowers to make certified preowned vehicles accessible and affordable.
The company has a high customer satisfaction rating and continues to grow across the country.
6. Carvana
Like DriveTime, Carvana operates as both the dealer and the lender. Unlike with DriveTime, you can complete the process from finance application to receiving your car all online. Carvana’s certified preowned inventory is scattered across the country at dealership locations and vehicle vending machines in major cities.
Bad credit auto loan borrowers who choose Carvana have multiple options for how to receive their certified preowned vehicles. Carvana will subsidize up to $200 for a one-way airline ticket for you to pick up your new car. Or you can choose a delivery option if you’re unable to reach the dealership yourself. Some cars ship for free, while others charge a delivery fee.
7. Buy Here Pay Here Dealers
Buy Here Pay Here, or BHPH, isn’t one single brand but instead refers to a type of dealership that caters specifically to local bad credit borrowers who have a low credit score. These dealerships are individually owned, but every city has at least one or two.
As with major corporations such as Carvana, CarMax, or DriveTime, these small dealerships typically do in-house financing. But there are some downsides to using these dealers.
Because of the competitive nature and the small size of each business, BHPH dealers tend to charge steep interest rates and require fairly heavy down payments. While they do offer bad credit financing, the loan term may be much less manageable than if you choose to work with a larger company.
Since these are single-location dealerships, you may also find that the vehicle selection is small, and you may have to go to more than one dealer to find the right car for you.
How Do I Find an Auto Loan Near Me?
You have a few different ways to find bad credit auto loans, depending on how much work you’re willing to put in. You can check with dealerships in your area to find out if they’re able to approve you, but this comes with a fairly significant risk if each dealership requires a credit check before they give an answer.
Specialized bad credit car loan networks make things easier. By filling out a preapproval form, you can get responses from several lenders at once without the hard credit check that the final approval process requires.
Most dealerships and lenders look at more than your credit score to decide whether to approve your auto financing applications.
Some national dealerships also provide in-house financing, so checking online with a dealership such as CarMax, DriveTime, or Carvana can help you find a local dealership willing to work with your credit.
Can I Get a Car Loan With a 500 Credit Score?
Getting a bad credit car loan with a 500 credit score is definitely possible. Between BHPH dealers and national-level dealer-lender companies, poor credit borrowers have many options.
But keep in mind that you may not get the best new vehicle specials or interest rate terms with a bad credit score.
Bad credit lenders in the auto loan industry tend to charge higher interest rates as a matter of course. While your credit score isn’t the only factor lenders consider in the approval process, it can play a role in determining your monthly payment. Your loan term may be more challenging with a credit score of 500 compared with that of someone who has a higher credit score.
You can potentially mitigate this problem by paying more toward your down payment, but companies such as Capital One auto finance and other big banks are less likely to work with you on the interest rate.
By working specifically with bad credit auto finance companies, you can get access to the financing you need, but it will come at a cost.
Is Everyone Approved at Carvana?
The approval rate at Carvana isn’t 100%, but it is very close: 99.9% of applicants are approved. Because Carvana plays both the dealer and lender role, the company has more flexibility in the loan terms it can offer customers.
Since Carvana only sells used and certified preowned vehicles, it doesn’t offer any preowned vehicle specials, and definitely no new car specials. But the company excels by making things simple and straightforward for prospective customers, even subsidizing up to $200 on a one-way plane ticket to pick up a car at a distant dealership location.
The whole process takes place on the website, so all the forms are digital, and your negotiations and credit terms are comfortable and low-pressure. Since Carvana has a lot of discretion, the company works hard to approve as many prospective clients as possible.
How Much Money Should I Put Down?
How much of a down payment you should make for your new car depends on many factors. The interest rate and the loan amount will determine your monthly payment, so making a large down payment will help you pay less over time.
If you have bad credit, this can be an especially important detail because your interest rates are likely to be higher. While new cars are typically under warranty, you will want to factor in the cost of repairs and scheduled maintenance if you buy a used car.
A larger down payment also helps seal the deal when it comes to getting loan approval. Your credit history and credit score aren’t the only details your dealer or lender will use to determine approval. Having the money to put down a larger down payment shows you’re serious, and more likely to make your monthly payments on time.
The higher your down payment, the better your loan-to-value ratio is. This factor is a rare instance where you want to get a lower score rather than a higher one.
Bad Credit Dealers and Lenders Near You Can Help
If you find yourself asking, “Where can I find bad credit auto loans near me?” then you may be surprised at how many local options are part of larger lending and dealership operations. Nationwide dealers and lending networks work with bad credit borrowers to help them keep things rolling every day.
You can secure bad credit auto financing whether you decide to work with a nationwide dealer-lender program such as CarMax or DriveTime, find a local Buy Here Pay Here dealership, or work with a lending network. Don’t sweat over whether the bus will be late; find an auto financing solution.
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