Auto dealers are in the business of selling cars not lending money but they do have direct lending agreements with different banks to help facilitate sales. When you go to a dealership and make a purchase, the loan you sign up for at the time is not with the dealership but one of the lenders they have direct lending agreements with. In essence you sign a loan agreement at the dealership and they in turn assign it to the lender that they got you approved through. Once the lender receives the contract from the dealer they send a check to the dealer for the contract amount. You in turn make payments to whatever lender it was assigned to.
With more and more people finding themselves with damaged credit it only makes sense that a dealership should have direct lending agreements with sub prime lenders as well. If more and more of their consumers are finding themselves with low credit scores than they need the types of lenders that will approve these loans. Most large dealerships not only have these direct lending agreements with sub prime lenders but also have a whole department at the dealership dedicated to helping customers obtain these types of loans. Typically they will call this department “special finance department” or “custom finance department”. The people that work in these departments are experts at all the different lenders guidelines for all the finance companies that they use. Whatever your credit situation is they have seen it before.
If you know your credit is bad, the easiest way to get approved for auto loans with bad credit is to contact the dealership and set an appointment with the special finance manager. They will more than likely request that you bring some documents with you like a recent paystub and utility bill. From there they will go over your credit with you in depth and discuss the reasons for the delinquency on your credit report. Once they have all the information they need they will submit your application to the lenders that they think will work best for your particular situation. Depending on the time of day they may have you wait or may have you leave and they will call you once they have a decision from the bank. Remember these people deal with this type of credit exclusively all day long. They will do all the work for you, most of the time while you wait. If there is a way to get you approved they will find it.
If you are honest and upfront on your credit application and with the special finance manager they will work hard for you. You will be amazed at how fast they can get an approval for you.
