Did you know that the average duration of loans on new cars recently rose to an all-time high of 66 months? This means car loans are being extended for five to seven years so that car buyers are better able to afford the payments on the ever-increasing price of new vehicles. Because as back-up cameras, seat warmers, and smart car features become standard, the price of the average car is going up, up, up.
When generating auto loan leads for dealerships, we strive to find individuals in need of assistance with monthly payments. If you are worried about being denied a loan for a new or used car, it’s important to understand as much as you can about the auto financing process.
Why do financing companies turn down loan requests?
There are many factors, but auto financing companies base their decision about whether or not to give you financial assistance on your credit score. Today, there are three companies in the United States with their own secret formulas to determine your credit score. These formulas are top secret, and ultimately they can determine whether or not you deserve help to pay your auto loan. Bad credit can haunt you for years, and you can be penalized hundreds of points for missing one payment.
Oh, and one of the three companies that determine credit scores just had more than 100 million accounts hacked.
Of course, credit scores and credit history are just one factor when applying for auto financing, but it is one of the most crucial deciding factors.
Where do I find the best subprime auto loans?
When you fill out a loan request to one of the many car financing websites, they will analyze the information and begin deciding if you qualify for a loan. Then they send it to like-minded dealerships who need help generating auto loan leads to connect with people like you. This way everybody wins. You are able to afford a car and get to and from work, the dealership is able to find new customers, which can be difficult in such a competitive market, and the financing companies stay in business.
Can I apply for auto loans at dealerships even if I have bad credit?
There are a variety of online services generating auto leads for dealerships, and many dealerships will offer subprime auto loans for both their new and used car leads. If you have a bad credit score, you can often apply for loans online. Research dealerships in your area or visit auto financing companies to learn more.
If you are in need of a car loan but have tried everywhere and had no luck, relax. There are people out there that want to help you find financing for the car that you need.
