Typically, rent-to-own car dealers will allow you to visit the lot to pick out a car you like and then make a down payment. Once the car is in your hands you will make rental payments on the car and each payment will be applied to the purchase of the car. When you make the last payment, the car is yours. These programs are very flexible and can approve virtually all applicants.

Most rent to own car programs will require the following:

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I’m happy to announce that we are adding a new source that should help our visitors identify and secure bad credit car financing in the United States (and Canada in some cases). The site is called Auto Loan ATM. They contract with a network of lenders and dealers that specialize in challenged credit situations.

Like the sites we’ve previously recommended, Auto Loan ATM will distribute the loan application you submit to lenders who fit the appropriate credit guidelines.

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Did you know that the FTC’s Used Car Rule requires car dealers to post a “Buyers Guide” in every used car they offer for sale to the public? The Buyers Guide should provide a great deal of information including the following key pieces of information:

* if the car is being sold “as is” or with a warranty
* what the dealer will pay under a warranty in repair costs (as %)
* a reminder of how difficult it is to enforce verbal promises and so called “verbal contracts”
* a description of the mechanical and electrical systems of the car being sold — including any major problems with the car

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A couple of years ago I walked into a car dealership feeling confident I was about to walk away with a brand new car.  Reality check. I was turned down and fast. The finance manager took one look at my credit and almost laughed out loud. How humiliating. Then they invited me to look into their second chance program. That involved waiting in the nasty waiting room at the dealership until the special financing manager was available to see me. I’ve heard they do this kind of stuff on purpose to get break people before they hit them over the head with huge interest fees.

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If you have bad credit score (less than 600) most lenders will instantly decline a loan application. In today’s tight credit market and with growing economic concerns it seems to be getting harder and harder for people with bad credit to find auto financing. This comes at a time when many Americans are facing the realities of foreclosure and bruised credit.

There are still some lenders that realize that some individuals get a bad credit score because of reasons beyond their control. Because lending underwriting criteria changes frequently, it may be difficult for consumers to shop for a bad credit loan on their own. One lender or dealer with generous bad credit financing terms may stop lending to poor credit from one day to the next.

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