Financing Options For Subprime Borrowers;

There are several financing options available for subprime borrowers.  You may not be aware of your current subprime rating, and the way that subprime categories are determined can be complicated.  Subprime means that you are in a category that represents the highest risk for a lender.  You might check out dealer incentives like Ford Specials for special rates and offers for subprime borrowers.  VW Specials are also available for both subprime and prime borrowers depending on the area and dealership.  With many dealerships and financing companies restricting the options available for a subprime borrower, there are fewer options available for subprime buyers for car financing than ever.  But you should know that if you are considered "subprime" that there are steps that you can take to improve your credit rating and get a better deal on a vehicle loan.

Many GM Dealer Detroit businesses and other dealers are now willing to work with subprime borrowers because of the slow state of the automotive industry.  For instance, Chrysler is now working with Ally Financial to offer leasing options to borrowers with a FICO score of 620 which is considered to be the upper end of the subprime category.  Subprime borrowers should always attempt to raise their credit score by paying down revolving debt and negotiating with creditors to reduce or pay off their debt loads.

You should know what your FICO score is and you can purchase a score online before you walk into a dealership.  The online score should let you know whether or not you are considered a subprime borrower.  If you have the patience, you may want to reduce your debt loads rather than buying a new or preowned vehicle right away.  This will typically result in a higher credit score and better vehicle financing options available to you.  When your score is improved, you may then consider buying a new vehicle with a better financing rate.