Denver Colorado Auto Loans with Bad Credit
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Finding the right vehicle for your situation isn’t as easy as walking onto a dealership lot, picking a car and signing a few papers. Your credit rating has a huge impact on which vehicles are available to buy. If your credit score is low, or if you don’t have a long enough financial history to develop a decent score, your financing options are limited.
In many situations, it may look impossible to obtain even the most basic auto loan in Denver, CO. With the world economy still recovering after the financial crash, banks and loan companies are more wary than ever when it comes to giving out auto loans. Late payments are up, bankruptcies are on the rise and it’s difficult to get the loan you need if your credit is borderline.
Thankfully, Valley Auto Loans is your solution to bad credit blues. With our help, you can find a dealership that will offer you a bad credit auto loan to buy the car you need. We know that your credit may be the result of unavoidable circumstances and that it’s not always the red flag other institutions treat it to be.
Car Financing with Bad Credit in Denver, Colorado
According to the most recent trends report from Equifax, one of the big three credit reporting agencies, auto loans are on the rise. At the same time, delinquencies on auto loans have dropped to levels that haven’t been seen since 2006. Even with bad credit, buyers are growing more likely to make payments on their loans. Yet it’s still difficult to find a loan if your credit is bad; lenders are having a hard time keeping up with the demands of the market.
Thankfully, some lenders in Colorado are open to doing business with people with less than stellar credit. Our network of auto lenders are here for you as a second chance if the big banks and lenders decline your applications for auto funding. They are available even if you have struggled with loans in the last few years, or, as is more common in today’s market, simply encountered a time of financial hardship that did long-term damage to your credit score. Most lenders don’t consider extenuating circumstances; ours know things can happen beyond your control.
The low credit auto loans offered by our lenders work for buying and leasing vehicles. We’re here to help you gain the vehicle you need as the first step towards repairing your credit, building your finances and creating a bright future.
Post-Bankruptcy Auto Loans
Sometimes, you have no other option but to file for bankruptcy. Unavoidable circumstances, from a loss of a job to a house fire to an invasion of wild animals can decimate your savings and have your finances dipping into the red every month. Bankruptcy is a valid option, the process exists for a reason but the negative consequences follow you for years. It can ruin your credit score and leave a black mark in place that flags you as too risky for most auto loan companies in and around the Denver area. If you filed for bankruptcy and can’t find a lender who will service you, come contact our network of bankruptcy auto lenders.
Finding a loan after bankruptcy is slightly easier than the usual bad credit auto loan. With bankruptcy, you’re given an opportunity to turn your life around. Our network of lenders at Valley Auto Loans knows this. When others deny you for a basic auto loan, our lenders will give you that second chance you need to get your life started again. We’ll help walk you through the process of financing a car to help you get a new job and get your financial freedom rolling.
All About the Buy Here Pay Here Model
Our networks include more than just a few lenders willing to overlook a mottled credit history. In Denver, we have connections with several dealerships who will offer you a car on the buy here pay here model. This model is designed to cut out the lender entirely; you buy a car from the dealer and you pay the dealer, with no intervening auto loan.
How is this different from a traditional auto loan, and how does the difference benefit you? Rather than a down payment and large auto loan financed by a bank, you sign a deal directly with the car dealer. You make a down payment, same as you would on a traditionally financed car. Then, rather than paying a bank, you pay monthly, bi-weekly or weekly payments to the dealer. In Colorado, many of our network dealers will allow you to pay via mail or through the Internet, to meet your available payment options. You won’t have to make a trip out to the dealership every time you want to make a payment.
The advantage of the buy here pay here model is the flexibility offered by a dealer without the intervening middleman. A traditional big lender has set terms that you have to meet and adhere to. Our dealers are willing to work with you to create a payment schedule that fits with your budget. You may even be able to get a better deal than you would with a traditional lender.
Denver, CO Rent to Own Car Dealerships
Another possible route you can take, when traditional financing fails you, is the rent-to-own program. This unique method of buying a car begins with you renting a vehicle. During this time, if your finances change or your need for the car declines, you can cancel the contract and return the car with no questions asked. If you choose to keep on with the program, your payments begin to contribute to a purchase agreement. After enough payments, the title of the car will transfer to your name.
One of the possible benefits of the rent-to-own program is the effect it has on your credit score. The credit reporting agencies will see that you are making regular payments on time, and your credit score will begin to improve. Of course, different dealers offer different deals. Some don’t report to credit agencies, which doesn’t help your credit at all. That’s why you should work with one of our dealers in the Denver area; we select dealers who will offer you bargains on vehicles that you won’t find anywhere else. As with any contract, you should always read the paperwork before you put your name on it. Dealers are often flexible; you can negotiate terms of the contract if you find something you don’t like. The rental term and the payment process will vary from dealer to dealer as well; shop around to find one of our dealers to offer the best deal for your situation.
Much like the buy here pay here model, rent-to-own dealers cut out the middleman of the third party lender. The dealership will be the one to create your rental agreement, and once you’ve passed the rental period, they will work with you to organize the purchase of the car. You won’t have to wait and wonder about third party loan approval, nor will you have to wonder if a black mark on your credit history will deny you the vehicle you so desperately need. The payment process you negotiate comes from the dealer, and they’re right there with you, working to develop a payment plan that fits your budget and your financial history.
Incredibly Easy In-House Financing
Do none of those options sound good to you? Would you rather work with a lender, despite your bankruptcy or bad credit, to purchase a car in the traditional manner? This may or may not be possible. If it is, of course, Valley Auto Loans is here for you.
One ideal option for this scenario is the in-house financing route. You still obtain a traditional credit loan, but the lender is your dealership rather than a bank or credit union. Our network of dealers provides us access to a group of dealers willing to offer in-house financing to those with potentially spotty credit histories. You may even be able to get lower interest rates and lower payments through our dealers than you would through a traditional lending agency.
Denver Car Dealers with Tote the Note Financing
Another potential solution to your car financing woes is the tote the note program, offered by many of our local Denver Colorado dealers. As another in-house financing solution, this program is similar to rent-to-own and buy here pay here programs. The dealership offers you a loan directly, rather than working through their lender list. With weekly or monthly payments, you can buy a used vehicle trough the dealership directly. Once you’ve made enough payments, you’ll pay off the full value of the dealership loan, and the dealer will inform the Department of Motor Vehicles of your ownership of the vehicle.
At Valley Auto Loans, we have a network of dealers with various available tote the note options, if you’re interested. No matter what your financial situation is, as long as you have the money to pay on a regular basis, we’ll have someone who can meet your needs. From rent-to-own and bad credit financing to tote the note and buy here pay here programs, there’s something for everyone in our network of motivated dealers and lenders.
As a buyer with bad credit, bankruptcy or low income, chances are you’re buying a used car. When you’re buying a used car, you need to be aware that almost every dealer is selling their cars as-is. This means that any problems with the vehicle are your responsibility once you have signed the contract. Before you agree to purchase any car, you need to have a mechanic check it out. Even with the most trustworthy dealers, you should still get a third party opinion. You never know what the dealer may have missed. Colorado lemon laws offer little protection to the buyer, generally only in cases of false advertising.
At Valley Auto Loans, we know how tough going through financial hardship can be. One wrong move can leave a lasting impression on your credit history for years to come. Big name lenders rarely give you a chance to explain your circumstances, and that leads to far too many denied loans. We strive to network with dealers and lenders who know how hard it can be to secure financing for a vehicle when you truly need one. Get started by contacting us today or using our online application, and you’ll be on the road in no time.
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