Private Party Auto Loans With Bad Credit

#private party auto loans

Private Party Auto Loans With Bad Credit

April 12, 2013

Private party auto loans are one option for auto purchase financing. Private party loans often require thorough documentation, but may be a more available and reasonable option for individuals with less-than-perfect credit history.

CarsDirect Financing

CarsDirect helps more credit-challenged customers find car loans than any other website in the country. The company works with a network of dealers who specialize in car loan financing. The dealer has access to a number of financial institutions and will shop around to find you the best deal. Just fill out a simple application and you will be on your way to receiving a car loan.

What Is a Private Party Car Loan?

A private party auto loan is a used car loan that allows you to finance a vehicle through a private party or individual in place of a dealership. There are many advantages to opting for a private party loan, and depending on your circumstances it could save you a lot of money.

Private Party Auto Loan Advantages

Going with a private party car loan opens up several options to you as a consumer. There are a number of banks, credit unions and financial institutions with varying car loan rates all competing to service you. The Internet is a great resource to compare rates from different companies, and there are online brokers that will connect you directly with an auto loan lender to give you a quote within minutes.

If you have bad credit then a private party loan is probably your best bet. Because you can pick which loans to apply for, you can choose only loans that are accepting of people with a bad credit rating. It’s important to realize that getting turned down on a loan can actually lower your credit score. You will also be able to find private party loans that do not require a down-payment, however if possible it’s recommended to pay at least a little up front to lower your monthly bill. Private party loans typically have shorter payback periods resulting in higher interest rates. However, don’t be put off by this because you can actually end up paying more on a loan with a longer payback period even if it has a lower interest rate. Also, with a shorter payback period It is more likely that your car will still be worth something when you are done paying off your loan.

Private party auto loans can also give you an advantage when negotiating with the person selling the car. Used car salesmen working at dealerships are trying to sell several cars to multiple people on a daily basis. This means that their knowledge of a car in question can only run so deep. With a private party loan you are typically dealing with the previous owner of the car so you should be able to get better information about the vehicle’s history and any problems you should be aware of before you buy it. Another advantage in the negotiation process with private party loans is that you have to be approved before you make an offer for a car, and therefore you already know your spending limit. This allows you to take a hard stand with people when negotiating the price you can afford to pay, whereas a dealer may try to persuade you to borrow more through their financial services.

Private Party Auto Loan Disadvantages

There are several disadvantages to this kind of car purchase loan.

Loan Term

One of the disadvantages of private party loans is the length of the loan term. For auto purchase loans, the loan term length can be as long as six years. However, private party loans often are for a substantially shorter length of time. Usually, the a private party loan is offered for a maximum of four years or 48 months and very often private party loans are only offered for 36 months. For a borrower who is looking for a much longer period to finance the purchase of their car – and lower their monthly payments as a result – a private party loan can have serious disadvantages.

The ultimate result of a shorter loan term is that you are paying the same principal for the purchase of the car, but you are paying a higher amount of interest. This results in higher monthly payments, overall when compared to auto loans that are financed through a dealership finance company.

Interest Rates

Another disadvantage of private party loans are the standard interest rates charged for these kinds of auto purchases. Typically, car loans obtained from the dealership may have largely reduced interest rates and may even be offered at zero interest if certain restrictions and requirements are met at the time of purchase. However, it is also possible to comparison shop for favorable interest rates if a borrower is able to dedicate enough time to this task.

Dealer Incentives

One of the features that many dealerships have been advertising of late are dealer incentives that provide for purchase security should a borrower lose their job or income. However, in order to take advantage of these incentives, a borrower must make their purchase finance arrangements through the dealer financing company. By using private party loans, borrowers eliminate their ability to take advantage of these incentives, which could be significant if they find themselves without a job and unable to meet their financial obligations as a result.

Negotiating Disadvantage

The entire process of purchasing a car usually involves a great degree of negotiation, including not just the purchase price, but also the interest rate and the monthly payments. In most cases private party loans require pre-approval before the actual purchase of a car. This greatly reduces the ability of a borrower to negotiate since they are already locked into their loan obligation when they walk into the dealership.

This can also be somewhat of a disadvantage even if purchasing a car from a private party, since pre-approval is usually needed before even approaching a seller. Here again, borrowers may find themselves locked into a loan that is larger than their actual needs and regret it every time they make their monthly payment.

While private party auto loans can be an attractive option in dealing with a finance department of a dealership, they offer specific and significant disadvantages when it comes to the length of the loan, interest rates and ability to negotiate those rates and monthly payments.

How to Research Private Party Auto Loans

If you are car shopping and looking to purchase a used car from someone other than a car dealer, you will probably need to research some private party car loans. Use the following steps when conducting your research.

  1. Find lenders. Since the only difference between a private party auto loan and a traditional car loan is the fact that no dealer is involved, regular lenders will likely be able to supply you with a loan. The only lenders which are now out of the picture are captive finance companies, meaning that banks are still viable loan sources. Other options when looking for a private party loan are local credit unions. You may find them online or in a phonebook.
  2. Submit loan applications. The lenders you find will be able to guide you through the loan approval process. You should be 18 years of age or older; have proof of income of at least $1,800 a month; have proof of residence; not be bankrupt; and have a social security number. More may be required by certain lenders and they will tell you if this is so.
  3. Compare approvals. After submitting applications and getting approvals, you may compare them to find the best deals. Details to compare are loan rates, additional fees and any special options which you feel will be beneficial.
  4. See what kind of interest rates you can get

Researching private party auto loans can help you purchase a used car and save money on the loan for the best deal possible.

Pre-qualify for Bad Credit Car Loans

#bad credit auto loans

Get Pre-qualified

Apply by Phone by calling: (855) 439-0814

Apply Online in just 3 minutes: Apply Now

Simply explaining the bad credit auto loan process is not easy. While the process of applying can take just minutes, it takes slightly longer to understand how we examine your unique credit situation in order to help you make the kind of choice that will both save you money and help rebuild your credit score.

Bad Credit

  • Typical Requirements
  • Types of Bad Credit
  • How Things Work
  • Fixing Bad Credit

What is a Bad Credit Car Loan?

For those new to the process, a bad credit car loan is an auto loan that is made available to an individual with a credit score that is considered subprime. A subprime credit score is usually considered any FICO score below a 620. People with such scores are considered to be “high risk “, and are often denied by traditional lending sources.

If you do not know what your credit score is, the Fair Credit Reporting Act entitles you to a copy of your credit report once every twelve months through We here at Auto Credit Express highly encourage potential car buyers to read and be aware of what their credit report says before applying. And be sure to check your credit report for errors to avoid being penalized for old and/or incorrect information.

What are the Typical Requirements?

While there is no nationwide standard, here at Auto Credit Express the typical requirements for someone applying for a vehicle loan are as follows:

  • Monthly income of at least $1,500 gross
  • 18 Years of Age or Older
  • Current resident of the United States or Canada
  • Current legal American or Canadian citizen or legal resident
  • Employed full time or has guaranteed fixed income

Gross income refers to an individual’s pre-taxed monthly income. This income should be verifiable through documents such as tax records. Fixed income such as Social Security, Disability Insurance, Child support, Alimony, or Public Assistance should be included in your monthly income total.

At least $1,500 gross income is required, and a $1,800 monthly income is recommended for most credit situations. Seasonal employees or temporary employees who have been at their agencies for less than six months do not qualify. The rest is fairly self explanatory: We only have bad credit car dealership networks in United States and Canada, and you must be a legal adult for contractual purposes.

“They made me feel like my credit was not a problem from the first step in the door.” Jerdina C. Detroit

Your score plays a big part in how favorably or unfavorably a dealer or lender views your credit. To gain a better understanding of what your score means, see what credit range you fall into on the chart below. Say, for example, you’re in the below average credit range with a 570 credit score. While some people may tell you that you have bad credit, it is still not the same as those who have truly bad credit of less than 500.

    Bad Credit Scores | 400-525
  1. Subprime Credit Scores | 525-550
  2. Below Average Credit Scores | 550-575
  3. Slow Credit Scores | 575-600
  4. Less Than Perfect Scores | 600-620

Also, not all bad credit is equal when it comes time to apply for a low credit score vehicle loan. Lenders will often separate bad credit into two profiles: situational and habitual bad credit. For example, if you have low income, a spotty job history and have missed many payment deadlines, you would be viewed as a habitual and unfavorable risk.

However, someone who has a higher average income, a good job history and generally makes all their payments until an unexpected event occurs, such as divorce or major illness, may be viewed more favorably. This is true even if both parties had similar credit scores. Why? The person who has exhibited responsible behavior until some sort of personal crisis occurs is perceived as less of a risk, while many lenders believe that someone who habitually misses payments is likely to keep missing payments in the future.

Below are some examples of situational bad credit and habitual bad credit.

  • divorce
  • illness or injury
  • loss of employment
  • bankruptcy due to medical issues, loss of income


  • multiple issues, not single event, long history
  • multiple bankruptcies
  • significant bad credit after BK
  • currently delinquent on all existing obligations

Personal Loans

#auto loans for people with bad credit

No Hidden Fees

This service is not available in New York or to New York borrowers due to interest rate limits under New York Law

First Financial not only has the most competitive rates for high-credit-score borrowers, we welcome those with fair, poor and bad credit because they make up 56% of the current American population. [i]

The Perfect Loan to Manage On-the-Go 

A-rated First Financial knows that today’s consumers want to access financial products at their convenience. That’s why we rejected the traditional bank model for an Internet-only structure. Enjoying all the security any bank creates, you can use your laptop or tablet to:

  • Make payments from your laptop, tablet and soon, your mobile device
  • Review statements and recent payments
  • Update your account information anytime if you move or want to change your logins
  • Make a one-time payment, set up auto-pay or schedule future payments.

There has never been a better time for managing personal finances. As recently as 10 years ago, loan and bank statements used to come monthly and much information seemed walled up behind the doors of the bank. Those days are over! Now borrowers and banking customers can watch their loan, checking and savings balances every day if they want to. They can complain and get answers on Facebook and Instagram. The power lies in the 21 st century consumers’ hands and First Financial strives to keep it there.

Check Your Rate. Without Impacting Your Credit Score

You’ve probably learned by now that each new credit card, line of credit or loan involves the lender checking your credit score. The credit bureaus see these inquiries and promptly lower your credit score, often as much as 10 points per inquiry. Our personal loan source gives you the freedom of checking just the loan amount and rate you would qualify for without running a credit check. A credit inquiry occurs only if and when you decide that our rates and terms are the best for you.

Trust the Lender on Forbes’ America’s Most Promising 25 Companies List

We knew we had a great concept when we started with this personal loan source, and we were thrilled when it received rave reviews from discerning news sources like The New York Times, The Wall Street Journal and CNN. When it made Forbes magazine’s “America’s Most Promising Companies” list with the likes of Smashburger and iCracked, we knew we could count ourselves among the those on cutting edge of technology that also would be a long term success.

Our source’s unique model departs from the traditional big bank model of one source for all funds going to many borrowers. Instead, we allow ordinary Americans to become investors, investing in your ability to pay off your high interest rate credit cards or home remodel reliably. Big bricks and mortar banks have shareholders to please and huge marketing bills to pay (not to mention tellers and electricity bills). We don’t! Respected business publications have embraced our model because by working strictly online, we are able to cut costs and shorten approval timelines. We pass those savings on to you! With every bit of the safety and security traditional banks offer, we are proud to protect your sensitive information with 128-bit or “banking level” security measures.

Even if your credit score is lower than 660, we still work hard to find the best cash advance and payday loan options for you. As with all of our products, the application process takes just minutes and you get offers, if not immediately, then within 24 hours or less. Apply today!

You Probably Qualify for a Personal Loan!

700 and Above  – Very good to excellent. We will have no problems giving you a loan with a credit score of 700 or above.

680 to 699  – This credit score puts you in the ” Good / Fair” category. That one point between good and very good to excellent credit generally makes little difference to lenders.

620 to 679  – If your credit score falls into this range, you fall into the “Okay” category. The closer your score is to 679, the better. 620 is considered to be a “par” credit rating.

580 to 619  – While you aren’t in the “Bad” category yet, you are teetering on the edge if your credit score falls in this range. 620 is the prime rate cut-off.

500 to 580 – You can still get credit in this scoring range. More information may be required.

499 and below  – Yes, even with as score of 499 or below you can still be extended credit. More information may be required.

$9 Billion Dollars Lent Since 2007

First Financial: Improving Credit Scores Across America

Financial experts agree: a personal loan can help to improve your credit score. How?

When you consolidate high interest rate credit cards on a lower interest rate loan and pay the full amount each month reliably, the credit bureaus take notice. Your score inches up. In fact, in a 2014 study of 14,986 borrowers, 77% of respondents found their credit score increased within three months of getting the personal loan. More, their average score increase during that very short period was 21 points! [ii]   Ready to lower your credit card payments, build that nursery or take the vacation that will reinvigorate the entire family?

Apply for a personal loan today!

If a large, bricks-and-mortar bank has recently offered you a high interest rate personal loan or even turned you down due to your low or bad credit score, tell them to get with the 21st century! First Financial can help you when others say no. Designed by a team of experienced financial managers focusing on this market, our comprehensive application more accurately gauges the subtleties of a borrower’s financial history. We’ve placed thousands of personal loans for people with special needs, even most students, bankruptcy-filers and low-income individuals.

[ii] Based on responses from 14,986 borrowers in a survey of 70,150 randomly selected borrowers conducted from July 1, 2014 – July 1, 2015,

Personal Loans.

#auto loans for poor credit

Get Approved Now!

Personal Loans

If you need a personal loan, we can help you receive the financing you need. is partnered with the nation’s most active lenders in all 50 states! When you apply with us, we will match you with lender options that best fit your current situation and at the lowest interest rate available from all of our national and local lenders.

Personal Loans Benefits

Welcome to

Important Loan Information

We are partnered with multiple national lenders and all credit situations are considered.


Renewal Policy

Each participating lender has their own renewal policy. Some participating lenders will automatically renew your loans or will require your permission to renew your loan. Some participating lenders will not renew your loan. It is important for you to understand that extending the repayment period for a loan may result in additional interest, as well as other fees, which can greatly increase the total amount you pay back on a loan. Be sure to check if your lender automatically renews loans, requires your permission to renew the loan, or will not renew the loan. State laws often govern loan renewal policies, so be sure to know your state’s policies with regard to loan renewal, and carefully read the lender’s terms before agreeing to and submitting your e-signature.

Implications of Late Payments

Each lender has its own criteria and policy when it comes to late payments. This may include additional fees and interest, and may result in reports to the three major credit reporting bureaus causing your credit score to be lowered. Before you agree to a loan, be sure you have read and understand the implications of making late payments. Also, each state has rules and regulations in place that payday lenders must follow when assessing fees for late payments.

Implications of Non-Payment Collection Practices

If you do not make the payments on your loan, you may be responsible for additional fees and interest and collection costs. This may lower your credit score. Lenders are required by federal and state laws to use fair practices in their collection actions for a loan that has not been repaid. You are protected by the Fair Debt Collections Act, which includes limitations on how a lender may collect an unpaid balance including

  • Not contacting you by phone before 8 am or after 9 pm
  • Not harassing you or using abusive language towards you over the phone
  • Not using deception to try to collect money from you
  • Not threatening you with legal action if it is not permitted

We will only allow lenders who are reputable and maintain their reputations actively; however, if you find any behavior that is not professional, or you feel is predatory, we need and want to know immediately. We are your advocate and your experience with us is paramount to the success of our company. We appreciate your trust in us to help you with your loan needs.


[In very specific situations where an individual needs money quickly, and qualifies for no other viable funding alternatives other than a Payday loan, we may provide a link to a Payday lender. Payday loans are not to be considered as a replacement for, or in the same category of, a personal loan. Their programs range from 250% to 420% for short-term “emergency loans” and have no credit requirements. We do not recommend this type of loan unless there are very compelling circumstances. We urge any client utilizing this loan type to pay the loan off as quickly as possible as fees and interest are very high. Often times, it is better looking for charitable organizations or family members to help, rather than taking a loan of this type. Please feel free to ask a consultant for a recommendation of a local charitable organization as we have done some research in this area.]

Ontario Car Loans

#auto financing for bad credit

Ontario Car Loans

Car Loans Canada was designed to help you find car loans in Ontario. Through Car Loans Canada, you can find our easy 30 second online credit application that are non-intrusive and designed to get you in a car today!

When it comes to finding a car loan in Ontario, our credit application has been designed especially for those with bad credit. Thanks to Car Loans Canada, you are not required to answer embarrassing and intrusive personal questions. Instead, you will only need to give the most relevant information.

Finding Bad Credit Car Loans in Ontario Couldn t Be Easier

Car Loans Canada takes pride in the fact that we have helped thousands of Canadians in all ten provinces and both territories find car loans even those with bad credit. The car loan industry in Canada has become specialized, and this means that there are lenders who focus specifically on bad credit. Car loans you find in Ontario cities like Toronto, Ottawa and Windsor are unique. Therefore, you may not find the same service in another province or territory. However, keep in mind that the Ontario Motor Vehicle Industry Council licenses and regulates dealers in Ontario

We Can Help You Find Car Financing in Ontario

If you have bad credit or credit problems don t worry, as Car Loans Canada is here to help. We know how critical it is for those living in cities such as Toronto, Ottawa and Mississauga to have access to lenders that specialize in bad credit car loans. As a result, we have assembled a network of lenders who have worked to help thousands of Canadians find the financing that they need

Car Loans in Ontario

In Canada it is no longer necessary to go through the difficult, uncomfortable and awkward procedure of meeting with a bank s loans officer. Through Car Loans Canada, you can find a simple online credit application that streamlines the process and skips the awkwardness. If you are in Ontario or anywhere in Canada and you need help financing a car, then Car Loans Canada has you covered. Apply now !

Online Car Loan

Online car loans have become extremely popular in recent years. The number of online applications has simply soared and with good reasons. Being able to apply for a car loan easily in the comfort of your own home is a dream, and the online car loan application couldn t be any easier or safer.

Online auto loans Free no-obligation auto loan application

#online auto loans

Getting an online auto loan puts you a step ahead – and makes life easier at the dealership .

Home > Online Auto Loan

Celebrating Our 20th Year

The operators of, the InterActive Financial Marketing Group, can be found in Richmond, Va, humming along in a cool new office space.

Founded by a three-generation car-selling family, InterActive became part of the Dominion Enterprises family in 2007. The Norfolk-based conglomerate is a major player in the auto services world, but is probably best known for print and online versions of magazine rack staples such as CycleTrader.

Even though we’re all grown up and corporate, we still wear jeans on Friday and we still reflect the values of the family that started the company in 1989. We could not have processed 5 Million aplications since 1989 without thousands and thousands of happy customers.

Our online auto loan application is handled on a secure, encrypted server to protect your private information. Your email address is not sold to spammers and we ask for only the barest minimum information needed to process your online application. You can hear for yourself on our online auto loan customer testimonial page.

FINAL POINT. If you proceed to another online auto loan Web site, please look to see if they list a physical address and phone number. Why would a company ask for your personal information and never provide any of their own?

Our address is below. And if you want to call and apply over the phone, just dial 1-800-Auto-Loan. And thanks again for your time.

Now It s Subprime Auto Loans Under Scrutiny – ABC News

#subprime auto loans

ABC News

Federal prosecutors are looking into the booming business of subprime auto loans. The investigation raises questions about whether GM and other firms have been selling questionable auto-loan investments to investors. The recent rise in auto sales has been fueled largely by consumer lending. Subprime loans are often made to borrowers who have poor credit histories. GM Finance says it has received a subpoena from the Department of Justice for documents related to subprime auto loans made since 2007. The Justice Department is said to be considering a civil lawsuit for potential violations of the Financial Institutions Reform, Recovery and Enforcement Act, a federal law that was passed following the savings and loan crisis in the 1980s.

General Motors says it has made progress in fixing its recall website so that it correctly lists all the cars that need repairs. The company says it expects the site to be fully corrected this week. The government had said Friday that GM’s vehicle identification number look-up system has been incorrectly telling some owners that their cars aren’t being recalled. That happened when the cars’ parts weren’t available. But the government says all recalls should be listed.

Gannett is spinning off its publishing business from its broadcasting and digital operations. The company is also acquiring full ownership of for $1.8 billion. The decision follows moves by Tribune, Time Warner and Rupert Murdoch’s News Corp in breaking off print media from their rapidly expanding broadcast operations. Gannett says the publishing business will basically be debt free once spun off, with the broadcasting and digital businesses holding the existing debt.

Sand is the new gold. Prices are going up as mining companies increase fracking at oil and natural gas sites. “Sand is a key ingredient in items from solar panels to smartphones, but in recent years billions of pounds of it have been poured down wells to help coax more fuel out of the ground,” The Wall Street Journal says. During the fracking process, sand is mixed with water and chemicals. “Frackers are expected to use nearly 95 billion pounds of sand this year, up nearly 30% from 2013 and up 50% from forecasts made by energy-consulting firm PacWest Consulting Partners a year ago,” the Journal reports.

Standard & Poor’s rating agency says the rising wealth gap in the United States is complicating the rebound from the recession, and raising the risk of boom-and-bust cycles. S width:670px;height:90px”

No Money Down Car Dealerships California. Bad Credit Loans 0 Down.

#bad credit auto dealers

No Money Down Car Dealerships in California

Get a car loan with bad credit and no down payment in CA. We help people who live in California and across the country get the financing they need. Use the button below to begin the application now.

We help California car buyers with bad credit find local car places with sign and drive low down payment financing.

California Zero Down Payment Financing

0 down payment used cars lots California and the USA

If you’re looking for zero cash down cars and live in California you’ve come to the best website. In addition to our relationship with thousands of 0 down car dealerships all across the USA, our massive used car database has cars for sale with 0, 49, 69, 79, 88, 99, 100, 200, 300, 500, or 1000 cash due at signing.

People in California can fill out an application to get started or select a CA city from the list above. We’re also the number 1 resource for obtaining buy here pay here and first time buyer car financing.

California New Car Lot Prices

Often California new car lots won’t budge when negotiating price on the showroom floor. At you’ll quickly get the lowest price upfront quote from our massive CA franchise automobile dealership database no matter what type of car, truck, minivan or SUV you want to buy.

To see what you qualify to buy a car at one of our no money down car lots fill out our lowest price quote request form, and you’ll quickly be contacted by a local California new car lot.

California Used Car Lot Inventory

If you’ve ever spent time surfing the search engines tryign to find a low down payment pre-owned vehicle in California with BHPH terms, you know how much time it can take. Our used search feature provides the most relevant local vehicles in California at the best available price and money down.

Within minutes you’ll be searching hundreds of local automobiles for sale in California. You can then narrow your search options further by choosing results by price, distance, make and model.

CA Used Automobile Search

We’re affiliated with new and used car dealerships all across California. Because of our relationship with such a wide variety of California automotive dealerships we’re able to find the best deals on cars in the state. Using our site is free and easy which isn’t something that can be said about other online car finding services. Receiving a free quote from a California based auto dealership doesn’t mean you have to purchase the vehicle. It will however give you an idea of what’s available right now in California and whether or not it fits into your budget. You can receive price quotes or monthly payment quotes so you can locate a vehicle that fits in your price range.

If you’re worried about getting a new or used with bad credit you can lay your worries to rest. At we specialize in finding cars for people with problem credit. We can answer the tough questions such as:

  • Can I get a make or model I like?
  • Can I afford a new ?
  • What type of financing options do I have?
  • How much will money I qualify for?

Every credit situation is unique. Our specialists can help determine where you stand credit-wise and provide you with the best possible financing options. Keep in mind that every time you apply for problem credit loans it will appear on your credit report. Too many credit requests can raise a red flag and make applying for financing more difficult. Luckily that’s what we’re here for. with our help you’ll be able to find out what you qualify for before your next vehicle purchase.

Apply Today! Drive Today!

No Money Down Car Loans

#auto loans with bad credit

No Down Payment Car Loans

Are you worried about down payment while buying a car? You will be pleased to know that you can get no money down auto loans and buy the car of your choice in an instant. Apply on to get affordable zero down payment car financing program. People with bad credit need not shy away from applying because bad credit no down auto loans are available.

Making a down payment is not possible for everyone. Most car buyers have trouble in putting money down for purchasing a car. Understanding this, has brought zero down auto financing for you. This makes guaranteed approval easy on no money down auto loans. Low down payment program is also available. Get an amazing opportunity of availing affordable rates by just filling a secure car loan application form.

The company believes that credit score is just one part of loan approval criteria. So, bad credit won’t be an obstacle in securing car loans without money down. No credit no money down option can also be availed by anyone including students.

How to Get No Money Down Auto Loans with Bad Credit?

• Search for subprime lenders who offer auto loans to people with bad credit.

• Your accurate SSN is needed for filling the car loan application.

• A decent monthly income can improve your approval chances.

• Valid income and employment proof.

• A co-signer can help.

• Opt for a less expensive car and avoid the chances of upside down.

• There should not be any current repossession or bankruptcy.

• You can trade-in your old car and use rebates from the new car to get an auto loan with no money down.

Anyone can apply for auto loan without down payment. has wide ranging criteria which makes approval easy. First time car buyers, students, people with no credit, bad credit borrowers, etc. can apply on the secure website.

What are the Benefits of Applying with

Next subprime bubble to burst: auto loans

#subprime auto loans


Subprime auto loans are on the rise and, just like subprime mortgages, are claiming untold victims.

Samuel Perez, 32, is still dealing with fallout from his experience with a subprime loan five years ago, he told The Post.

Officials at Woodside, Queens, dealership Auto Palace offered him an 8.49 percent interest rate on a BMW, with a teaser rate of 6 percent after six months. Perez worked out a financing deal that included monthly payments and trading in an Audi and rolling its payments into the new car.

The rate never made it down to 6 percent since the BMW didn’t work properly, so Perez returned it. But the dealer wouldn’t give him back the Audi, which it had not paid off, or release him from the debt on the BMW, even though he’d never received title.

Perez found himself scrambling to borrow a car to get to work — while fending off bills on two cars he didn’t have, or own, which hurt his already low credit score, he told The Post.

This situation is not limited to small lenders, either — large banks are jumping into the fray.

Just last week, Ally Financial’s new chief executive hit the accelerator into the roughly $300 billion market for subprime auto loans.

Jeffrey Brown said Ally, the biggest player in the auto lending market, wants to boost the amount of subprime auto lending to as much as 15 percent of all loans, as US automakers reported a nearly 14 percent sales jump in January for new cars over last year’s levels.

With interest rates that can at times exceed 20 percent, subprime auto loans are a risky but popular revenue stream for banks — and often a devastating move for consumers.

The marketplace in which auto loans are made to consumers with a credit score below 640 is so shady that multiple regulators, from New York Department of Financial Services head Benjamin Lawsky to Manhattan US Attorney Preet Bharara, are investigating possible abuses.

Regulators have requested documents from Ally and other major auto lenders Santander Consumer USA and GM Financial regarding securitization of subprime auto loans.

Perez turned to Brooklyn attorney Ahmad Keshavarz for help. Keshavarz filed a lawsuit against Auto Palace and two other defendants alleging a range of harms, including violations of the Fair Credit Reporting Act, breaches of warranty and violations of the Truth in Lending Act, according to court documents. Auto Palace could not be reached for comment.

The defendants settled, and Perez bought another car.

In 2012, the Queens County District Attorney’s Office charged Auto Palace and its owners with $730,000 in sales tax fraud, and its former finance manager with defrauding customers out of $115,000.

The owners pleaded guilty in 2013 and paid $150,000 to the New York Department of Taxation and Finance. The former finance manager pleaded guilty to grand larceny and was sentenced to two to four years in jail.

Civil cases are still pending against Auto Palace by the Consumer Affairs Department and Department of Motor Vehicles.

“I learned from my mistake,” says Perez.

There are many signs that the subprime auto loan market is reaching unsustainable levels. Delinquencies, average loan balances and loan terms are all increasing nationwide.

In New York, the share of subprime loans has grown to 18.6 percent of consumers from 14.2 percent in 2009, and average loan size is up 5 percent to $18,874, according to Equifax.

“Loans will start blowing up,” says Wolf Richter, Web publisher of