Special Financing Auto Loans

Special Financing Auto Loans

If your credit isn’t so great, you may not be able to get “standard” financing for the vehicle you need to purchase. Special financing auto loans may be the way you’ll need to go. If you’ve never heard of “special financing” then it’s important to understand the concept so you won’t be surprised when you begin to shop for a lender.

It doesn’t really matter how your credit went from good to bad.* Sometimes it’s a “slow drip” type of credit problem, where you make a late payment here and there, skip a payment from time to time, and ultimately get further and further behind until things get ugly. Or sometimes bad circumstances, like job loss or divorce or medical problems, can add up to wreak havoc on your credit history. Then there are the credit catastrophes like bankruptcy, foreclosure or repossession. These issues stand out as a big black mark on your record, which makes some lenders hesitant about working with you. If you have any of these issues, chance are pretty good you’ll have to start looking for special financing auto loans.

In a nutshell, “special financing auto loans” is a nicer way of saying “car financing for people with bad credit.” Groucho Marx once said he didn’t want to be a part of any club that would accept him as a member, and lots of people have the same thoughts about finance companies that cater to people with lousy credit. They think, “If they’re willing to work with me — as bad as my credit is — then they’re probably not someone I want to work with in the first place.” Perhaps you should think differently. These companies are specifically geared toward working with people just like you. They’ve seen it all before, so nothing you can throw at them will be a surprise. It’s a match made in heaven, really.

Finding a company that will provide special financing auto loans isn’t difficult. Do a quick Internet search and you’ll turn up dozens if not hundreds The Federal Trade Commission (FTC) recommends shopping around for financing in order to compare terms and find an auto loan that best suits your situation. The FTC advises considering sources including banks, credit unions and finance companies. You’ll definitely want to make sure you’re working with a company that is reputable. Consider doing a little research and read the reviews to see if this is a company you want to have a three to five-year relationship with.

Nobody wants to get into a bad credit situation, but that’s the reality for many people. Once you’re there, if you still need to find a lender who will work with you, consider going with special financing auto loans. You may get the loan you need, in spite of your credit.


* “Bad” or “Poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press), Bankrate.com, Credit.com, Investopedia, NerdWallet.com and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by RoadLoans.com and Santander Consumer USA.

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