Finance Guides

Use our automotive finance advice to make sure that you get the best deal and car insurance value when making decisions such as whether to buy or lease a new car, or if you're deciding between a new and used car purchase.
Frequently Asked Questions

You can start the process of getting a bad credit auto loan right here at The Car Connection! We work with a coast-to-coast network of special finance dealers and we want to connect you with one in your area. The process is simple, just fill out our easy, no-obligation, and free auto loan request form, and we’ll get to work matching you with a local dealership.

These dealers have the lending resources to help you, even if your credit situation is less than perfect. The lenders that work with our nationwide network of dealerships specialize in helping car buyers with bad credit and no credit. Even if you’ve been through a bankruptcy or repossession, there may be a lender out there for you.

If you’re in the market for a new or used car, but don’t know where to turn due to your credit situation, don’t wait any longer. The Car Connection wants to help you get on the road. Click here to get started today!

You’ll usually be required to put money down on a subprime auto loan. Lenders want to make sure you’re serious about taking out an auto loan. The minimum down payment amount required varies, but lenders typically require $1,000 or 10 percent of the vehicle’s selling price – whichever is less. If you’re able to, it’s highly recommended you put more money down because a down payment is there to help and not hurt you.

The benefits of putting more money down outweigh the drawbacks. You’ll be able to lower your monthly payment with a higher down payment, and you’ll decrease the overall interest charges. If you don’t have the full amount for a down payment, but have a car that's paid off or has equity, you can use it as a trade-in to fulfill the down payment requirement. If you want, you can even combine your trade-in with cash. Make sure to weigh your options, and crunch the numbers to see what a bigger down payment can do for you.

The type of car you can buy depends largely on your credit and finances. Lenders typically use your FICO credit score to determine your level of auto loan approval. With FICO, credit scores range from 300 to 850 and break down into five categories: excellent, good, fair, poor, and bad. Good credit generally starts at 700, and any score above this typically makes an applicant eligible for prime lending, or close to it. In this situation, people usually start by picking out any car they choose and then try to get financed with that particular vehicle in mind. People whose credit falls in these ranges also have the ability to pre-arrange financing from a direct lender, which is more difficult for people with credit issues.

With a bad credit score, typically any score of 620 and below, the process is reversed. You need a subprime lender, and they only work through special finance dealerships. The dealer submits your application to the lender who either approves or denies your loan. If you’re approved, the dealer presents you with a list of vehicles you qualify for which you can test drive and select from. You then complete the paperwork, and take delivery of your vehicle. Vehicles must be less than 10 -years-old with no more than 100,000 miles on them, to be eligible for subprime financing.

Here at The Car Connection, we work with a nationwide network of special finance dealers that know how to handle unique credit situations. In order to qualify for a subprime auto loan, you’ll need to meet the lender’s basic requirements. Although these can vary by lender, the basic requirements include:

  • Minimum gross (pre-tax) monthly income of $1,500 to $2,000
  • Proof of income in the form of your most recent paycheck stub
  • Proof of residency by showing a recent utility bill with your name and current address listed
  • Proof of a working landline or contract cell phone with a phone bill – a prepaid phone won’t cut it
  • A list of at least six personal references with names, addresses, and phone numbers

The better prepared you are, the more likely you’ll be able to qualify for a loan. If you plan on trading in your car or have completed a bankruptcy, bring the appropriate documents to show the lender to speed up the process of qualifying.

If you want to lease a car with poor credit or no credit, you should know that your chances of getting approved are slim to none. Leases are usually for consumers with excellent credit, and even if somebody with bad credit were to get approved, it would be more expensive. If you can’t qualify for a lease, there are other options to consider.

Instead of looking into leasing, consider subprime financing as an alternative. When you take out a subprime auto loan, you can improve your credit as well as have a car to drive. If you aren’t sure where to find a subprime lender to work with, The Car Connection can get you started. We work with a nationwide network of special finance dealers that know how to handle unique credit situations. Don’t let your credit hold you back – get started today!

A repossession stays on your credit reports for up to seven years. Your credit score is affected by the repossession, but the impact lessens over time. If you want to buy a car immediately after a repossession, understand that your chances of getting approved are small. Most subprime lenders require a repossession to be at least a year old (unless it was included in a bankruptcy) before they'll finance you.

Instead of looking to buy a car right away, consider waiting a bit and then going through a subprime lender. Subprime lenders know how to handle unique credit situations – including car buyers who have gone through a repossession. Getting a car loan after repossession takes time, but with careful planning, you can be on the right track to improving your credit.

Subprime auto lenders have the ability to look beyond credit to provide car loans for people who are struggling with credit issues. In order to do that, they have a strict set of requirements that a borrower must meet in order to qualify. Though the specifics vary by lender, most subprime lenders stick to a set of basic requirements. These requirements are necessary to show lenders your ability, stability, and willingness to pay, which are qualities needed to take out and repay an auto loan. The basic requirements for a bad credit auto loan are: a minimum income, proof of income and residence, valid driver’s license, proof of a working telephone, and a list of personal references.

Proof of income must be shown with a computer generated check stub showing a minimum pre-tax monthly income of $1,500 to $2,000 from a single source. Subprime lenders generally require a minimum of six months employment on your current job, with at least three years of employment history to show, with no gaps longer than 30 days between jobs. You must bring in a current utility bill showing the address listed on the application, and proof of a working landline or contract cell phone in your name with a phone bill – prepaid phones aren’t valid. Lastly, lenders typically require six to eight personal references, complete with names, addresses, and phone numbers.

Yes, it’s possible to get an auto loan after bankruptcy. Once your bankruptcy is discharged, it’s a great time to get a car loan to begin rebuilding your credit. Since your credit score drops as a result of going through a Chapter 7 or Chapter 13 bankruptcy, you’ll most likely need a loan from a bad credit lender. Here at The Car Connection we want to help you find a local dealer for your situation.

Once you’re approved for an auto loan, each full, on-time payment you make helps add to your payment history. Payment history is the biggest factor that makes up your credit score, so building this over the term of your loan speeds up credit improvement. Plus, if your credit has improved enough, you may qualify for better rates and terms the next time you finance a vehicle.

Financing with The Car Connection

At The Car Connection, our goal is to remove the challenges of getting financed for a vehicle. Through technology, flexible financing options and exceptional customer service, we want to give you the power to control your car-buying experience.

  • All Credit Types
  • No Obligation
  • Easy and Secure
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