Choosing New Car Loans with Bad Credit

At Don Wood Automotive we know that while exciting, buying a car can also be a challenging experience. That’s why we created this site, Don Wood Says Yes… to help ease one of the more difficult parts of shopping; the loan application.

Many people wonder if they can get a car loan with bad or challenged credit. The answer is a simple, Don Wood Says Yes!

Learn more about credit challenges here common to get a loan for a vehicle with bad credit.

There are a few things to be aware of that can help the process

No License To Drive

While not having a license might seem self-explanatory; there are instances where people apply for a car loan without a driver's license. A bank is not going to provide financing for a car the owner is not legally allowed to drive, and a dealership will not allow test drives either. More commonly, a shopper may have a driver's license, but not from the state in which they currently live. If you have moved, it is important to be licensed in the state of your residence before applying for an auto loan. In this case, it does not matter if you have good credit, bad credit, or no credit at all.

No Job, No Car Loan

One of the primary factors that a lender will look at is pretty simple; do you have the ability to pay back the loan. If you do not have steady employment, there is no way to verify that you can meet the monthly obligation of a loan. Before applying you’ll want to make sure you have proof of current employment including recent pay stubs.

Self Employed?

Those who are self-employed and people who perform contract labor have a similar struggle. Your best approach is to provide enough documentation to the dealership or banking institution to prove enough money is earned on a consistent monthly basis to satisfy the loan obligation. Be prepared to provide several months of bank records and cancelled checks, and any other documents that verify your source of income.

Recent Vehicle Repossession

If you have had a car fall into repossession very recently, you are going to have a harder time securing a loan for a vehicle. The bottom line is you you have an outstanding debt to a previous lender that may or may not result in legal action. Once a lender repossesses a car, the debt is not forgiven. The lender will attempt to sell the vehicle, usually at or below wholesale prices, and still has the option to force payment for the difference. Another lender will also have to consider whether or not they will have to repossess your vehicle as well.

you are considering allowing a car to go into repossession, don't! Some lenders will allow you to refinance a car loan for a longer term, which will lower your monthly payment. You may also be able to trade your vehicle at a dealership for a vehicle with a lower monthly payment. Both options are better than having to make a payment on a vehicle that you no longer own.

Too Young To Get An Auto Loan

A car loan is a legally-binding contract with a lender. Persons under the age of 18 are not going to be able to get a loan for your vehicle for this reason. The only exception to this rule is if you are declared an emancipated minor , where under certain circumstances, an individual under the age of 18 is allowed to assume financial responsibility.

You Didn't Apply For A Car Loan

Not applying for a loan through experts, like Don Wood Says Yes, is one of the primary reasons people with credit challenges don’t get approved. It can be a difficult task to identify which lenders and car dealerships are willing to help, and which ones are not. At Don Wood Says Yes we’ve already done that. Because of our experience and long standing track record with financial institutions we know the best way to meet your needs.

So get started. Fill out our simple form to get the process started and we’ll do everything on our side to make sure the result of your application is a resounding Yes!