The words sound good “guaranteed car financing we finance everyone”. Do you think there is a catch? Of course there is, with enough cash down it is easy to get even the worst credit buyer financed, for example if you put eight thousand down on a ten thousand dollar vehicle it will be easy to obtain financing. At the worst the dealer will put himself as the lien holder on the title and he will finance the difference himself.

“Buy Here Pay Here” is another program where there are no banks involved. You will still need to put down a substantial amount of money and pay the dealer weekly or monthly. The problem with this kind of program is they will not report to credit bureaus so this will do nothing to improve your credit. You will also pay more for the vehicle seeing as the dealer cannot charge interest unless he has incorporated a financial institution.

Some Buy Here Pay Here businesses do incorporate a bank for themselves this gives them the advantage of making the approval decisions themselves. Many of these dealers put a device on your car so that if they do not receive timely payments they can disable your vehicle through their computer. The advantage to this kind of business is they will report the loan to the credit bureaus.

The words guaranteed car finance seems like a great reason for going to the store to see what it is all about but let me give you this bit of advice. Negotiate your best price before you let the dealer know you have credit issues as they will treat you better. This means do not let anyone run your credit score until you are absolutely certain that there is a vehicle on their lot that you would like to own.

Also see cheap car finance.