Used automobile financing comes in all shapes and forms. Many people believe that it is difficult to finance a used car today if you have bad credit, but this simply is not true.

Because so many people are experiencing difficult times financially, they are lead to believe that auto loans are difficult if not impossible to get.

There is no shortage of money to loan for automobiles!

There are many options when it comes to used automobile financing and it’s a matter of finding the right program that works for you. Let’s discuss a few ways that you can get a car loan for a used vehicle.

I’m going to start with the best way to get financing for a vehicle if you have not so good credit.

Locate a used car dealership in your area that specializes in special financing.

Since not all dealerships offer this type of service, you will need to do a little homework.

Once you find a dealer that will do all they can to help you, you will want to get pre-approved. Bring with you your proof of income, a couple bills to prove your residency, driver’s license and proof of insurance.

Special financing departments have many lenders available and will do all they can to find you the best loan terms. This is considered secured used automobile financing. The lender has collateral to secure the loan should you default.

The next option would be to get a personal loan.

This is more of an unsecured loan; instead you are making a promise to pay back the personal loan. If approved the lender will give you a check that you can cash, or deposit into your account and then write a check for the price of the used vehicle.

With a personal loan, you will need proof of income and also proof of residency. You may be asked for a couple personal references that will vouch that you are good for the money and that you responsibly pay your bills.

Another option would be to use a co-signer for used auto financing.

This is where someone will sign the loan papers alongside of you to help secure the loan. The co-signer is agreeing to pay the loan if you should skip or miss payments. Because this is a big responsibility on behalf of the co-signer, you will want to do all you can to make the payments in a timely manner. If not, you will affect the co-signer’s credit rating; this would not be a good thing for any relationship.

Finally, you can go to a buy here, pay here dealership.

It is suggested that this be a last-ditch effort. The reason is because the cars are usually marked up higher than their true value. In addition because these dealers do not run credit checks, they risk that they may not get paid on some of their vehicles.

With this risk there are typically higher interest rates for anyone who finances a car through a buy here, pay here dealership.

Used automobile financing is available to those who may think they have absolutely no chance. It is best to assess your situation and determine which method works best for you.