Can I Secure A Car Loan with Bad Credit History?  

If your credit isn’t where you’d like it to be, securing a car loan might feel more challenging, but it’s not impossible. A less-than-perfect credit score shouldn’t stand between you and the Volkswagen you want to drive. Whether past financial setbacks, unexpected life events, or simply not having credit have impacted your score, there’s a way forward.

The first step to getting approved for financing is understanding your starting point. Knowing your credit score and credit history gives you a realistic picture of what you might qualify for. Request your credit report from all three major credit bureaus—Experian, Equifax, and TransUnion—and review it carefully. Look for any errors or inaccuracies that could be unfairly dragging down your rating. You’d be surprised how often a simple dispute can boost your score.

And remember that just because your credit score is less than perfect, it doesn’t mean you’re out of options.

When it comes to securing a car loan with bad credit, your dealership can make all the difference in your experience. At Mike Reichenbach Volkswagen, your trusted Volkswagen dealership in Florence, we understand that financial setbacks happen to good people, and that’s why our VW Finance department is dedicated to helping you get into a reliable ride, regardless of past credit history. 

We don’t believe in one-size-fits-all financing. Our finance team partners with a wide range of trusted lenders, allowing us to find loan solutions tailored to your unique situation.

Ready to learn how we can help you get behind the wheel? Let’s explore your options.

Boost Your Chances with A Down Payment

When you’re pursuing bad credit auto financing, a down payment can be your secret weapon—and the good news is, you probably don’t need as much as you think. Most subprime lenders require a down payment of just 10% or $1,000, whichever is greater. That’s often less than borrowers expect.

Putting money down upfront does two important things. First, it reduces the total loan amount you’re financing. Second, it demonstrates to lenders that you’re serious about this financial commitment, even if your credit history has some bumps in the road.

Why a Larger Down Payment Works in Your Favor

While meeting the minimum down payment requirement will help, putting down a bit more can do the following:

• Improve your approval odds – A larger down payment proves you’ve been able to save money and shows your commitment to both securing and repaying the loan.
• Lower your monthly payment – It’s simple math: the bigger your down payment, the less you’re financing, which translates directly to a smaller monthly payment that’s easier on your budget long-term.
• Shorten your loan term – By reducing the overall financed amount, a larger down payment helps you pay off the vehicle faster so you can own it outright sooner.
• Saves you money on interest – The more you pay upfront, the less interest you’ll accumulate and pay over the life of the loan. This is especially valuable when dealing with the higher interest rates that often come with bad credit financing.

Creative Ways to Build Your Down Payment

If you’re working with bad credit and a tight budget, don’t worry—there are multiple ways to increase your down payment:

• Cash savings
• Vehicle trade-in 
• Combination of savings and trade-in value

Volkswagen Finance Deals for Extra Savings 

Whether you’re thinking about financing or leasing a Volkswagen in Florence, our Volkswagen specials and manufacturer incentives allow you to save even more on your new ride:

• Volkswagen manufacturer incentives 
• Military bonuses provide active duty military and veterans with special discounts
• College grad specials allow you to start your next chapter behind the wheel of a new VW

These options can help you save even more when you shop at Mike Reichenbach Volkswagen of Florence! 

Building and Maintaining Good Credit 

While securing a car loan with bad credit is possible, it’s important to remember that with any type of loan, making on-time payments and managing your credit responsibly can help improve your credit score for the future.

Shop for a New or Used Vehicle in Florence No Matter Your Credit Score!

At Mike Reichenbach Volkswagen, we’re here to help you secure auto loan financing you can be confident about. Whether you’re a first time car buyer or working to rebuild your credit, we’re here to make financing easy. 

Learn more about car loans for bad credit or come see our friendly finance team today!

We proudly serve drivers in the Florence, SC, area, including Darlington, Georgetown, Horry, Marion, and Sumter!

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