There are fundamental differences between a bad credit car loan obtained through a franchised new car dealer and the type of loan offered by tote the note used car lots. Sometimes, it's good to get back to the basics.For today, at Car loans of America, that means discussing the difference between special finance car loans and buy here pay here (sometimes called “tote the note”) car loans. Although both loans are part of the subprime car loan market, there are marked differences between the two. Here is a description of both and the advantages and disadvantages of each type of loan:
Most bad credit auto loan lenders report to the 3 major credit bureaus. This is important if you're trying to repair your credit history and re-enter the traditional auto loan market. The selection of vehicles from a new car dealer is greater. The vehicles are, generally, either new with no miles or newer used vehicles with lower miles. In many instances, Carfax vehicle history reports are available for most or all the used vehicles these dealers carry in inventory.
Not all franchised car dealers offer this service and the level of experience and expertise in these special finance departments can vary widely. The selling price of the cars is usually higher, since we're dealing with newer vehicles with lower miles. Interest rates are still high, due to the nature of the loans and any problems that you encounter while repaying the loan will be reflected in your credit report. Learn more at https://carloansbadcredit.wixsite.com/auto-loans/post/should-i-refinance