If you have bad credit and need a vehicle in the Los Angeles metro area, you definitely have a choice. There are no less than 100 used car dealerships scattered across Los Angeles to choose from when the time comes. But how do you know which one is right for you? Read on to learn more about choosing the right dealership for your situation.
Do you know your car buying options?
When it comes to buying a used vehicle, the type of dealership and lender that is best for you depends on a few factors, the first of which is your credit. Whether your credit is good, bad, or nonexistent can determine whether you qualify with a traditional lender, online lender, subprime lender, or insider financing broker.
If your credit is great, you can get a loan from a traditional lender and choose from dealerships when you need to buy a car. It is also possible to pre-qualify for financing with an online lender when you have a high credit rating. These options are not always available if you are shopping for a vehicle with bad credit.
when you have bad credit in los angeles, chances are you need a subprime lender. These lenders only work through specialist finance brokers, so you cannot sit down with them and get a loan directly. Instead, you go to a dealership and the CFO works with those lenders on your behalf.
When you go to a dealership, you should come prepared with your search complete and ready to buy. When preparing, you should be aware that these lenders each have their own requirements and qualifications that must be met in order to get approved for a loan.
If you’ve ever been turned down by a subprime lender, don’t worry – there are still dealers out there who can help you get the car you need. These are called buy here pay here (BHPH) resellers, and they are usually able to help borrowers qualify for a loan without a credit check. BHPH dealerships are also lenders, so they fund the loans themselves, but don’t expect to walk away with the newest vehicle with a low APR. It costs to drive away if your credit is in this condition.
Choosing the right type of lender in Los Angeles
In order to determine which type of lender is right for you, you must first know your credit score. If you don’t know where your credit score stands, you could be denied financing simply because you’re not going to a lender who’s equipped to handle your type of credit.
Most auto lenders use your three-digit FICO credit score to determine if you qualify for financing. FICO scores range from 300 to 850. Let’s take a look at the FICO credit score ranges:
- Excellent credit: 750 – 850
- Good credit: 700 – 749
- Fair credit: 650 – 699
- Bad credit: 550 – 649
- Very low credit: 300 – 549
You can get your FICO score on their website for a fee, but many banks and credit card issuers now let you see your score for free. If your credit card company or financial institution does not provide your credit scores each month, there are many resources to check your credit that are available online.
It’s also a good idea to know what’s on your credit reports before buying a used vehicle. You can get a free copy of your credit reports from each of the three national credit bureaus – Experian, Equifax and TransUnion – every 12 months by visiting www.annualcreditreport.com.
Go to the right LA car dealership
You can drive all over Los Angeles looking for the right used car dealership to work with your credit situation, but there’s a long way to go between the small independent dealerships in Eagle Rock, the dealerships in University Park and East LA dealerships. Rather than wasting time, gas and effort hoping to find a dealer that works for you, why not let Auto Express Credit help, instead?
We’ve been connecting consumers with dealers who can work with them for over 20 years now. Our network of special finance brokers has lenders available to work with people in many types of credit situations. Fill out our fast, free and non-binding form car loan application form to start today!