How good is the bar none for an auto loan?

also do they do the financing or do they find banks. i have really bad credit and can get approved for an auto loan but because a have a trade in with neg equity i cant get one with out a huge down payment. if i dont trade it in i can get approevd but i cant afford both any suggestions

How good is the bar none for an auto loan?

Alien Hunter,

I think Bar None is a licensed lender so they can purchase credit score lists from the credit reporting agencies and send out their pre-approved direct mail piece. In my opinion, Bar None is more of a marketing company than they are a lender. A local dealer pays Bar None to send out the mail, if they say you are pre-approved then they have to give a bona-fide offer of credit. This offer is sometimes unrealistic, but it is a bona fide offer of credit.

For example, 50% down, 36 month financing, at a 25% rate is a bona fide offer. I閳ユ獡 not saying that this is what Bar None would offer you; I閳ユ獡 just using this as an example of how some lenders may get around the legalities of sending out a pre-approval offer.

After you respond to the offer, you will most likely be sent to the dealer that paid them to send out the mail. The dealer will then attempt to get you financed through different lenders. If they are unable to obtain financing for you they have the Barn None offer to fall back on.

From my experience, there are two ways to trade in a car with little or no money down, not so good credit, and negative equity. In either case you should expect a higher payment than you are paying now. As a general rule of thumb you should expect to pay $20 to $30 per month additional payment for each $1,000 dollars of negative equity.

Method 1: Find a cheaper new car with a big incentive or rebate. Lenders offer better rates and terms on newer cars. The rebate will also take a chunk out of your negative equity and may meet the minimum down payment requirements of the lender.

Method 2: Find a used car in high supply and low demand. These cars will have a higher book value than market value. Lenders loan money based on the book value, the most common books used are the NADA Used Car Guide (primarily in the Eastern US), and Kelley Blue Book, (primarily in the Western US). Example of this type of used car include convertibles in the winter time, 4WD vehicles in the spring, or off lease vehicles models that are now flooding the market due to a great offer a few years ago.

I hope this information helps. One last bit of advice, if you are able to trade in, make sure you select a vehicle that will fit your lifestyle for the length of the loan, to avoid negative equity in the future you will want to keep your new car for at least 75% of the loan term.

How good is the bar none for an auto loan?

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