| Quite often people who have had financial | | | | people with bad credit. Many of these car dealers |
| challenges automatically assume that their credit is | | | | prefer to sell the most economical new cars they |
| so damaged that they will not qualify for an auto | | | | carry. It is far easier for the dealer to get the |
| loan. For some this is all boils down to a fear of | | | | customer approved for a new car loan, where |
| rejection. They are so afraid of being turned | | | | the profit margin is high for both the dealer and |
| down for a loan that they would rather not even | | | | the financing company. Many dealers shy away |
| try to apply for auto financing. Certainly, fear of | | | | from selling used cars because of the issues in |
| rejection is a strong emotion that often keeps | | | | finding financing for a vehicle that has already lost |
| many from getting what they need and want out | | | | a considerable amount of equity. Unfortunately, |
| of life. Buying a car with bad credit is no different. | | | | these second chance programs do have their |
| There are many dealers that specialize in working | | | | limitations and often require that the buyer |
| with people who have badly or no credit histories. | | | | present a co-signer with good credit. |
| The problem is that these dealers are often locally | | | | A better option is to opt for a local "buy here, |
| owned and not as well known as the major | | | | pay here" dealer or a " rent-to-own dealer ". |
| companies that market in mainstream media. | | | | These small, locally owned and operated dealers |
| Some of the popular dealers known to help | | | | are known to provide customers with in-house |
| people buy a car with bad credit include | | | | auto financing solutions. This means that the |
| DriveTime and JDByrider. Both of these car | | | | dealer will finance the car themselves and benefit |
| dealers specialize in selling used cars to individuals | | | | from the additional profit generated by the |
| with no credit or bad credit. Both JD Byrider and | | | | financing terms. Unfortunately, this also means |
| have locations across the United States, especially | | | | that they carry more risk in their business which |
| in major metropolitan areas. | | | | results in higher sticker prices and interest passed |
| Many car dealers have offer so-called "fresh | | | | on to the buyer. However, both offer people with |
| start" or "second-chance"programs to serve the | | | | very bad credit the opportunity to buy a car. |