Bad Credit Loans

Bad Credit Loans with No Money Down

People with bad credit often find it challenging to get a car loan with no money down. There are places such as a bad credit loan center available though. Most of these finance companies only offer financing through local dealers, in most cases they do not lend national bad credit loans directly to consumers.

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Consumers with a vehicle to trade in, regardless of its worth, will have a better national bad credit loan option available to them. Experienced dealership finance managers can often manipulate the trade in value to meet a lenders minimum down payment requirement. For example, you have a trade in that is only worth $500 and you wish to purchase a car that has a $15,000 price tag. The dealer finds a bad credit lender that will approve the loan but the lender requires a 10% down payment. The dealer can manipulate the numbers to satisfy the lender’s requirement and sell you the car for $16,200 and give you $1,700 for your trade.

In the example above the net price would be the same. $15,000 - $500 = $14,500 and $16,200 - $1,600 = $14,500. Most states tax the consumer on the difference between the sales price and the trade value, so there would not be an additional tax burden on the consumer by structuring the deal this way.