Is There 100 Percent Financing Bad Credit Car Loans?
As in one of the questions answered above, if you have bad credit, the automobile dealerships and other auto lenders (banks or credit unions) will often want to mitigate their risk in one of two ways; either with a down payment, which can sometimes be a token amount (e.g.: $199, etc.) or, with a cosigner on the auto loan application. With a cosigner on your auto loan application that has a good credit score, you can often get a low interest rate and good terms, even if you have a low credit score. If you do decide to use a cosigner, remember that the friend or family member cosigning on your auto loan also needs to be aware, that in the event that you stop making your car loan payments for any reason, and you default on the car loan, they will be responsible to repay the outstanding balance of the car loan. For this reason, a cosigner should only cosign for an auto loan if they can afford to repay it in the event of default.
