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When looking around to purchase a car, buyers should first consider shopping around for a loan. Even buyers with bad credit should not simply rely on the dealership to find suitable financing. Bad credit auto loans are offered by many lenders, and just because a person has bad credit it does not mean that they should not take the time to find the best deal possible. Before heading to the dealership, you should always contact your bank or credit union to see if they are willing to finance you.
Not all banks and credit unions have auto loan products for people with bad credit, but you will never know until you try. You should also take the time to check out all the available bad credit auto loans with other lenders. Using a website like BankRate.com, you can get a quick look at several lenders that are willing to finance cars for people with blemished credit in addition to being able to compare all the various interest rates they offer. After securing financing, head to the dealership and enjoy the experience of being a cash buyer. There is less paperwork and less haggling, and in many cases the interest rate is much lower. If the dealership is actually able to find you a lower interest rate, then you should take it.