Beware as your good auto loan might become the last nail on your financial coffin. One good thing about bad credit auto loans is the fact that it makes it easier for people with not so good a credit score to own cars. As financial service sector is morphing into multi-million industry more lenders enter the market to catch the last of the clients. Along with this phenomenon many very attractive offers come from such lenders. Although some of the proposals will be legitimate, bear in mind that there are also unprincipled lenders whose only intention is to take your money and run. If you read this article you will learn the pitfalls of bad credit auto loans.
If you have a poor credit history, then by all means avoid dealer financing. Keep all details of financial planning before hand and compare with finance offers from auto dealer. Bad credit auto loans which you get via individual financing don’t apply to monthly payment scams like the common spot delivery scam. The deal will not be based on monthly installments but on the selling price of the car. End the meeting right away if the dealer only talks to you in terms of monthly payments. If you’ve got to finance via a vehicle dealership, do not take vehicle delivery till the loan’s got approval. When leasing automobiles, be careful of companies who say there was an error on the contract and that it will need to be rewritten and re-signed.
If you agree to be a signer on bad credit auto loans for someone with less than perfect credit, check to see that both signatures appear together on the same loan agreement. Do not get tricked into signing separate contracts, or you will be a part of a scam known as straw purchase. Those with unsatisfactory credit ratings and those who are careless are the ones who are most likely to be easily cheated. The lender knows very well that you cannot secure a loan even with a co-signer as you have a outrageously poor credit history. So they ask for a co-signer with a good credit score who carries the entire loan instead!