On the Scorex Plus Credit Scale any credit score between 550 and 619 is regarded as subprime. That means a score of 560, 570, 580, 590, all up to 619 is designated as subprime.

Scores between 450 and 550 are regarded as deep subprime. Subprime car financing, means that the APR lenders will charge you will be more that than charged to prime buyers financing a vehicle.

There are factors, however, that will be taken into consideration, which will ultimately determine the interest rate on the car loan. Factors like your job stability, the amount of down payment you are willing to deposit on the loan. Some subprime lenders will require a down payment of at least 5% of the car value.

The number of bankruptcies you have filed in the past, the age and mileage of the vehicle, your income expense ratio and the option of having a co-signer all play a part.

It is advisable to see a auto loan officer  at your community credit union rather than a bank, as credit unions offer APR that are less than banks. In addition, credit unions loans are capped at 18%.

WARNING: Before applying for a car loan, please, please get a copy of your credit report. Credit experts have suggested that over 79 percent of all credit reports have errors. A slight error can result in an increase in the interest rate dealership will charge on an auto loan

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Here is the list of Lenders who Finance subprime loans

Lender: 1st Investors Financial Services
Street: 675 Bering Drive Suite 710
City, State, Zip: Houston TX 77057
Loan Service: First Investors is an independent consumer finance company which originates automobile loans indirectly through relationships with franchised automobile dealers in the United States. The Company’s indirect lending business operates in 28 states through relationships with hundreds of automobile dealerships.
Phone: 888-622-9210

Lender: 722 Redemption
Street: 7901 Vine Street Suite 200
City, State, Zip: Cincinatti OH 45216
Loan Service: A bankruptcy vehicle expert will customize a FREE, NO OBLIGATION report detailing how much you can save by keeping or replacing your car. You will be contacted within one business day.
Phone: 888-721-2800

Lender: AFS Acceptance LLC
Street: 101 NE 3rd Avenue Suite 2000
City, State, Zip: Fort Lauderdale FL 33301
Loan Service:  Everyone should have the opportunity to establish good credit. AFS Acceptance offers that chance to people across the country every day. Our goal is to provide customers the opportunity to purchase a quality pre-owned or new vehicle, while also helping them establish or rehabilitate their credit. We understand the challenges of finding financing options when blemishes like open bankruptcies, previous repossessions or foreclosures are part of your credit record or if you have limited financing
Phone: 877-223-3254

Lender: America’s First Federal Credit Union
Street: PO Box 11349
City, State, Zip: Birmingham AL 11349
Loan Service: Auto / Watercraft / RV Loans – America’s First Federal Credit Union
America’s First Federal Credit Union Online  Schedule Loans & Credit Cards Mortgages Auto / Watercraft / RV Loans Wheel Power Dealers Credit Cards Other Loans
Phone: 800-441-4638

Lender: American Credit Acceptance
Street: 340 East Main Street Suite 500
City, State, Zip: Spartanburg SC 29302
Loan Service: American Credit Acceptance is a rapidly growing, subprime automotive finance company that has been operating since 1991. In August 2007, successful entrepreneur and businessman, George D. Johnson, Jr., purchased a captive finance subsidiary from one of the nation’s major dealer groups and formed ACA. ACA has quickly established itself as a lender of choice for deep subprime automobile lending needs in franchise and independent dealerships nationwide. We provide loans to consumers who otherwise could not obtain financing from traditional banks, credit unions, and manufacturer.
Phone: 866-441-0251

Lender: American General Auto Finance
Street: 2768 Eastern Blvd
City, State, Zip: Montgomery AL 36117
Loan Service: Indirect Auto Financing | Springleaf Auto Finance is your one-stop solution to auto financing. Springleaf Auto Finance is an exclusive provider of flexible auto financing to independent and franchise dealers. We help auto dealers say yes to more customers, from our offices located predominantly throughout the southeastern U.S., with 18 branches in 9 states that handle over $230 million in auto loans.
Phone: 800-457-3741

Lender: AmeriCredit Financial
Street: 4001 Embarcadero
City, State, Zip: Arlington TX 76014
Loan Service: Subprime Auto Loans | Dealers | GM Financial. Subprime Auto Loans for people with an average credit score of 570. A lot of GM Financial’s subprime customers are individuals who have experienced financially challenging personal events such as divorce, job loss, injury or illness.
Phone: 888-556-4616

Lender: Automotive Credit Corporation
Street: 26250 Northwestern Highway
City, State, Zip: Southfield MI 48076
Loan Service: ACC – Automotive Credit Corporation Exciting Opportunities for Dealer Partners
Phone: 800-810-2202

Lender: Capital One Auto Finance
Street: 3901 Dallas Parkway
City, State, Zip: Plano TX 75093
Loan Service: Auto Loans, Auto Financing, Refinancing, Loan Calculator | Capital One
Get new car loans, used car loans, or auto loan refinancing at the official site of Capital One. Use the auto loan calculator to view competitive rates.
Phone: 800-227-3863

Lender: CAR Financial Services Inc.
Street: 600 Westpark Drive
City, State, Zip: Peachtree City GA 30269
Loan Service: CAR Financial is dedicated to serving the individual needs of automotive dealers and automotive non-prime financial organizations like yours
Phone: 800-984-9188

Lender: Chase Custom Finance
Street: 201 N. Central Avenue 19th Floor
City, State, Zip: Phoenix AZ 85004
Loan Service: Car Loans, Auto Loan – Chase Auto Loans
Apply online for a car loan from Chase. Find information on current interest rates. Use our loan calculators.
Phone: 800-223-5050

Lender: CPS
Street: 16355 Laguna Canyon Road
City, State, Zip: Irvine CA 92618
Loan Service: CPS is a publicly traded subprime auto finance company servicing auto dealers nationally since 1991
Phone: 800-304-6812

Lender: Crescent Bank & Trust
Street: 1000 Veterans Blvd Suite 100
City, State, Zip: Metairie LA 70005
Loan Service: Crescent Bank & Trust – Sub-prime auto financing, personal and commercial checking, savings and CDs – New Orleans, Louisiana, Baton Rouge, Lafayette, Lake Charles, Alexandria and Shreveport
Phone: 800-264-4381

Lender: Drive Financial Services
Street: 8585 N. Stemmons Freeway Suite 1100
City, State, Zip: Dallas TX 75247
Loan Service: Santander Auto offers a competitive near-prime lending program for customers with a 575-680 FICO and no recent derogatory credit.
Phone: 888-540-5626

Lender: Exeter Finance Corp.
Street: 222 W. Las Colinas Blvd. Suite 1800
City, State, Zip: Irving TX 75039
Loan Service: While banks and finance companies typically look at the FICO score, they also consider other factors. Following these basic guidelines will generally help to improve your credit score: Pay Bills On-Time / Keep Balances Low / Close Unused Accounts / Pay More Than the Minimum / Keep expenses to less than 30-40% of their gross monthly income
Phone: 877-393-8379

Lender: EZ Dealer Finance
Street: 8998 RT. 18 N. Suite 210
City, State, Zip: Old Bridge NJ 08857
Loan Service: EZ Dealer Finance online access to submit credit applications for all your motorized vehicle loans and leasing needs. Quick applicant to lender matching allows you to select the lenders to work with
Phone: 866-343-6714

Lender: Fifth Third Alternative Finance
Street: 925 Freeman Avenue MLD 009014
City, State, Zip: Cincinatti OH 45202
Loan Service: Vehicle Financing 0.25% rate discount when payment is deducted from any Fifth Third Bank checking or savings account using Auto BillPayer
Phone: 877-782-8102

Lender: Financial Solutions (Bulk Purchase)
Street: 2446 Durham Manor Dr
City, State, Zip: Franklin TN 37064
Loan Service: Auto Bulk Buy Here Pay Here Auto Paper- We Buy Bulk Auto Notes Receivables
Phone: 615-414-6708

Lender: Inspire Auto Finance
Street: P.O. Box 190349
City, State, Zip: Dallas TX 75219
Loan Service: Home – Inspire Auto Finance
Phone: 214-4677473

Lender: InterActive Financial Marketing Group
Street: 114 Virginia St.
City, State, Zip: Richmond VA 23219
Loan Service: Interactive Financial Marketing Group
Phone: 888.905.1002

Lender: P*E*Financial
Street: PO Box 1736
City, State, Zip: Groves TX 77619
Loan Service: P.E. Holding Corp.
Phone: 409-549-2220

Lender: Security National Automotive Acceptance
Street: 6951 Cintas Bulevard
City, State, Zip: Mason OH 45040
Loan Service: SNAAC
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Phone: 800-995-0591

Lender: TEBO Financial Services Inc
Street: 4025 Erie Street S
City, State, Zip: Massillon OH 44646
Loan Service: Tebo Financial Services – Consumer Loans and Dealer Financing. Application Loans for people with less-than-perfect credit. Sometimes, circumstances beyond your control give good people bad credit. If you have difficulty obtaining a loan, Tebo doesn’t judge you… we help you get the credit you deserve. First Time? Create Account
Phone: 330-879-3680

Lender: United Acceptance Inc.
Street: 2400 Lake Park Dr. SE Suite 100
City, State, Zip: Smyrna GA 30080
Loan Service: United Acceptance forging strong long-term relationships with both auto dealers and employers to offer great used car loan origination to through dealers
Phone: 888-951-9512

Lender: Vehicle Acceptance Corp (Bulk Purchase)
Street: 4144 N Central Expressway Suite 350
City, State, Zip: Dallas TX 75204
Loan Service: We are a recognized leader in the purchase of vehicle notes from independent Buy Here Pay Here dealers throughout the United States
Phone: 800-380-3882

Lender: Virtual Lending Source
Street: 7084 Miramar Road Suite 400
City, State, Zip: San Diego CA 92121
Loan Service: Founded in 1997, Virtual Lending Source has an easy financing process, which puts you in control of the car buying experience. Our large network of automotive lenders and dealerships nationwide can help you get the best pricing and finance options available!
Phone: 800-400-9192

Lender: Western Funding Inc.
Street: 3915 E. Patrick Lane
City, State, Zip: Las Vegas NV 89120
Loan Service:
Phone: 702-434-1990

Lender: Westlake Financial
Street: 4751 Wilshire Bulevard Suite 100
City, State, Zip: Los Angeles CA 90010
Loan Service: A.P.R. as low as 5.99% / Multiple autos OK / Up to 72 month term / Reasonable FICO requirements
Phone: 888-211-6010

Baton Rouge, louisiana residents looking for a car loan can find many dealers and lenders to cater to their vehicle taste, regardless of credit history. Whether the car buyer decides to put 500, 1000, or 1,200 dollars down there are car dealers in the city that will sell him a car at an average interest rate.

Have bad credit or your FICO score puts you in the sub-prime category? Whether your credit score is 450, 470, 500 or 550 there are lenders such as credit unions and BUY HERE PAY HERE (BHPH) dealership that will work with you.

CarDownLoan advice to you is to settle for a certified used vehicle and place a reasonable down payment, say, 20 percent down. With a huge down payment, your credit score will not be a major requirement.

Car Loan & Auto Dealers Baton Rouge, LA

Company: A A A Mighty Movers
Address: 3579 Victoria Drive Baton Rouge Louisiana 70805
phone: (225)357-460

Company: A K Durnin Chrysler Jeep
Address: 6815 Florida Boulevard Baton Rouge Louisiana 70806
phone: (225)927-390

Company: Acadian Used Cars
Address: 13503 Florida Boulevard Baton Rouge Louisiana 70819
phone: (225)274-020

Company: Aces Rent To Own Auto Sales
Address: 4080 Florida Boulevard Baton Rouge Louisiana 70806
phone: (225)201-040

Company: Acura of Baton Rouge
Address: 13550 Airline Highway Baton Rouge Louisiana 70817
phone: (225)753-840

Company: Affordable Investments Used Cars Inc
Address: 6276 Airline Highway Baton Rouge Louisiana 70805
phone: (225)357-490

Company: Airline Auto Mart Inc
Address: 4520 Airline Highway Baton Rouge Louisiana 70805
phone: (225)357-149

Company: All Star Automotive Group
Address: 11637 Lake Sherwood Avenue North Baton Rouge Louisiana 70816
phone: (225)298-322

Company: All Star Automotive Group
Address: 6401 Bluebonnet Boulevard Baton Rouge Louisiana 70836
phone: (225)767-806

Company: All Star Nissan
Address: 12422 Florida Boulevard Baton Rouge Louisiana 70815
phone: (225)272-933

A car loan is not like a variable mortgage loan. The interest on most car loans are fixed, meaning it will not change during the course of the auto loan.

If you are delinquent on your payments and violate the terms of your contract, then in most states car dealers have the right to charge a late fee.

Sub-prime APR are determined by market variables, including interest rates set by the Federal Reserves. They do fluctuate, but they have no effect on the loan after the contract has been signed.

Sub-prime is a credit score below 550 – 619 on the Scorex Plus and 601 – 640 on the Vantage Score system

To prevent car dealers from taking advantage of you, get a copy of your credit report. Your FICO score determines whether or not you fall in the sub prime category and how much interest your will be charge on a car loan.

Another note, because credit unions charge less interest than banks for auto loans, visit your local credit union before talking to a car dealer

Ranked No. 1 overall auto lender in U.S. with 7 percent market share, the company has a 2 percent repossession rate, with a 1.90 percent of loan contracts 30 to 60 days late or delinquent.

In December of 2008, Ally limited its financing to car buyers with a FICO score of 621 down from 700 a few months earlier, catering mainly to those above sub prime status as characterize by the Credit Bureau.

In July, 2011 Ally Bank pursued a new strategy to increase the percentage of used car auto loans origination to 50 percent, up from 20 percent. To accomplish this goal, the company began accepting non prime, or sub prime loans (500 to 679 credit score) for customers who demonstrated a strong ability to pay.

According to data from the Experian credit bureau, used car APR can be many points above that of new vehicles. Subprime borrowing adds a few more points.

On average, loans to used car subprime buyers are higher than 9 percent, in comparison to 5 percent or less for used car buyers that are credit worthy.

In the first quarter of 2011 used car buyers had an average FICO score of 663, while new car buyers had scores of 766. The average used car loan was around the price of most certified used vehicles: $16,636 with monthly payments of $343 and a loan term of 58 months

Ally offers special financing for GM brand family vehicles: Buick, Cadillac, Chevrolet, and GMC; Chrysler Group brand family vehicles: Chrysler, Dodge, Jeep®, and Ram; Maserati, Saab, and Suzuki vehicles. Car buyers can have a certified used 2000 – 2005 GM vehicle for about 3.9 APR with terms up to 60 months.

The company has a retail financing relationship with over 14,000 car dealers across the country.

Before you contact Ally for an auto loan, check your credit report. Credit scores give lenders an indication as to your creditworthiness and help set the tone for the negotiating process. Your credit score might be higher than you think. Studies have shown that about 72 percent of car shoppers fail to check their credit report.

Check your credit report for mistakes. You may be thinking that you have poor credit, but by address errors on your report and by paying bills on time, you could dramatically improve your creditworthiness.

Also, make sure you are prepared to purchase a vehicle priced within your budget. A good rule to follow: your monthly car payment should not exceed 15-20 percent of your monthly take-home pay.

If you are wondering if ALLY will finance car buyers with poor credit, no credit history or other financing terms and conditions call: 1-877-247-ALLY(2559)

Before you are qualified for a car loan, the car dealership or lender will conduct a credit check to determine your credit worthiness. If the lender gather that you are in a not too bad of a credit situation, say sub prime, averaging about 550 to 610, then they will take the next step towards financing.

They will check your budget to determine whether your income far out paste your expenses. If after all your monthly expenses you are left with about $500 to $650 and the vehicle you are requesting is within the $10,000 range they will move on to the next step.

The lender might ask you some questions about your disability. Is it a permanent situation? Did you receive disability status while being active in the military? These questions will help the lender understand how stable is your disability income and help him / her to frame a financing deal appropriate to your financial capabilities.

If your credit is not at least of sub prime level, that means, if your credit is really bad, then you should consider having a co signer such as a spouse or parent with good credit sign for your loan.

A co signer with good FICO score can help reduce interest rates on car loan dramatically.

If you can afford it put a down payment on the vehicle. A deposit is always a good way of reducing both the APR and length of the loan. Good luck!

Whether you live in York, Nebraska – Detroit, Michigan – Baton Rouge, Louisiana – Seattle, Washington, north, south, east or west of the country the financial set backs are the same and most Americans look forward with earnest anticipation for a decent amount of money from filing their W2 tax statement this year. There are signs that the economy is improving – something to sigh about.

To use your W2 as a down payment for an auto loan, you must first ensure that the car dealership or salesman is trustworthy.

Between January 1st and April 15th, there are many car dealers who would partner with tax accountant or tax refund firms to help people file their taxes with the intent of using all or a partial amount of their refund as deposit.

Here are some advice to consider:

1. If you do not yet have a W2, then a pay stub can be used. You will have to file a Leave and Earning Statements (LES) with the IRS.
2. Call the IRS Office (1-800-829-1040) if you have questions
3. You should have a signed document indicating how much the dealership is allowed to remove as deposit
4. Check your credit score to ensure you receive a good interest rate on the loan
5. Get a second opinion on your tax return. H&R block started doing form 1040′s for free. AARP does free tax returns for low income tax payers in every city.
6. Do not let the dealership select the car for you. Choose a vehicle that is affordable. A certified used vehicle would be best
7. Take a loan with a term no longer than 48 months. The longer the term the higher the total loan amount.

Remember, if you maximize your tax return, then you can place a larger amount as a down payment. The larger your down payment, the less your monthly payments, the quicker you pay for the loan, the higher your FICO score goes and the possibility of you falling into an upside down situation is reduce

Some Dealers that accept W2 as down payment

Durrett Motor Company
5520 South Shaver
Houston, TX 77034
Phone: 713-941-5616

Patty Peck Honda
pattypeckhonda.com
Ridgeland, MS
Main Office
Phone: (888) 902-1166
Fax: (601) 707-0222

JD BYRIDER
Myra Borshoff Cook, APR
Borshoff
47 S. Pennsylvania St., Ste. 500
Indianapolis, IN 46204
317-631-6400

RK Chevrolet
At RK Chevrolet, you can use your W-2 for a down payment on a vehicle! RK can arrange a rapid refund on your taxes
2661 Virginia Beach Boulevard
Virginia Beach, Virginia 23452
757-486-2222

Family Auto Centers
At Family Auto Centers in Raleigh you can bring in your W-2 and drive home in a car
2919 Capital Blvd
Raleigh, NC 27604
RALEIGH – Glenwood Ave (919) 571-5081

CNAC
Take your last pay stub from 2011, or your W-2, and let a CNAC associate calculate your 2011 Tax Refund
855-CNAC-NOW.(855-262-2669)

18 percent interest is very high. This is usually the APR assigned to very bad credit car buyers. Research has shown that sub prime and deep sub prime buyers pay interest of 14.29% and 17.65 respectively. In the auto loan financing industry there are many avenues.

A car buyer should not have to accept 18 percent interest from the first offer. There are banks like ALLY, Wells Fargo and Chase who cater to sub prime car buyers.

However your local credit union offer the lowest rate on auto loans. In fact, all credit unions loans are capped at 18 percent, so it is very unlikely that they will require this APR from you.

Better yet, submit a car loan application with us and let lenders compete for your business.

Whether you are buying a car in Kansas, Mo, North Mississippi, Orange County or Dallas, Texas putting a down payment on a car loan is advisable. A down payment lowers the principle on the loan and reduces you monthly payment, allowing you to pay off your loan on time, improve your credit score and avoid the possibility of an upside down loan.

In addition, some lenders and buy here pay here car dealers will reduce the interest rate on the loan when buyers are willing to put down a sizable deposit.

However, before you put down $500 on a new or used vehicle there are some documents you should look over first.

Check your credit report to see how bad your credit really is. About 79 percent of all credit reports has errors. If you discover errors on your credit report notify the companies involved to issue a correction. A few points difference in your credit score can result in hundreds, if not thousands of dollars in saving.

Make sure you have a current drivers license. Some dealers will sell cars without requiring a drivers license, but to be safe you should have one

Get your W2 and work history

If you are bringing someone to co-sign the loan remind them of the documents they will need, such as an SSN

If you are using your home as additional collateral or home equity line of credit, your mortgage document will be essential

Another option, is to let lenders compete for your business. By using cardownloan.com auto loan application car dealers will negotiate for your business

While most banks have to answer to shareholders on Wall Street your community credit union does not. While banks like Regions and thrift deposits like New York Community Bank Corp are insured by the Federal Deposit Insurance Corp, credit unions deposits are insured by the National Credit Union Administration

Credit union has a cap of 18% on all loans interest rates. That means your car loan will never cost over 18 percent even with a very bad credit history. Because credit unions are community oriented you are more likely to have leverage in negotiating the interest rate on a car loan even if you have low credit score.

A $19,000 (principle + interest )car loan finance through a bank will cost you around $17,200 if that same loan was finance through a credit union.

The use of credit unions as a lender for car loans is growing. In 2010 Vehicle loans made up 29.1 percent of all credit union loans. In 2011 used vehicle loans expanded 3.43 percent during the year, and 0.2 percent during the fourth quarter.

Here is the latest quote from Pentagon Federal Credit Union for example

48 Mo Used Car 1.99 Good credit and membership required.
60 Mo Used Car 2.49 Good credit and membership required.
36 Mo Used Car 1.99 Good credit and membership required.

Advantages and disadvantages of banks and credit unions

To quality for an income based car loan, you will have to prove that you have a steady job and that you receive a take home pay of at least $1500 a month.

In addition, you will have to demonstrate that your current budget reflects that your expenses are only 70% of your income. You will need a drivers license and ability to pay for auto insurance. If you can make at least a $500 down payment on the deal, this would influence the car lot owner to sell you the car with little hesitation