Creative Financing for an Auto Loan

Have you wanted to buy a new car but were concerned that you were not going to get approved? Maybe you have gone to several dealerships hoping that someone will approve your auto loan. It can be a very frustrating thing to keep being turned down. You may have had credit problems in the past; however, you have been doing better. You pay all of your current bills on time but there is still a time showing on your credit report where you were not able to pay on time. There is still financing for an auto loan available to you.

Creative financing is the ability to get something based on credit but it is a little different from the mainstream way of getting an auto loan. Did you know that it’s possible to even get a car loan after you have filed for bankruptcy? It is actually something that is pretty easy to do. Once you have filed bankruptcy, the creditors hope that you have learned your lesson and will give credit. The other side of the coin is that you cannot file bankruptcy for another seven years, so it’s a good bet that they will get their money. If you don’t know of any lenders in your area, you may have not heard of them. In most areas, there are dealers that deal with lenders who can creatively finance your auto loan.

Sometimes these lenders deal in certain types of cars that the dealer was able to get a deal on. By having less money invested in buying the car, the dealer can wheel and deal a little more on the bottom line. This is especially true if you are trading in a car for a new one. If you are trading in and you will owe more than the car is worth, the dealer will show that they are giving you full trade value.

Then on the other side of the equation, they will add that money to the other car. Since the other car has been heavily discounted, it will make the cost of the new car come up in value. Many things can be done with the rebates and cash back programs that car manufacturers have currently. This money can be added onto your loan as a down payment. When you add that with the money you already have, it will appear as if you are putting a sizeable down payment on the car. This will help you look better when seeking a loan.