With the huge popularity of Cash for Clunkers, many car owners are interested in getting rid of their old, broken down gas guzzlers in exchange for a new, energy & gas efficient car. Unfortunately, not everyone is eligible for the Cash for Clunkers program, and for some people, even the rebate is not enough to assist them in affording a new vehicle. Auto loans are a viable option, but if you've just been through bankruptcy or have a bad credit history, it may not seem possible. Fortunately, you can get an auto loan for people with bad credit.

Getting auto loans with bad credit can actually be a possibility as long as you're prepared. While a lot of people with a poor credit score may immediately accept the first loan offer they receive, simply because they are a. eager to get their car or b. don't think they'll get anything better, accept less than favourable terms, even though they could get a better deal from another lender. If you want a good auto loan but don't have the best credit, read on to learn more about how to get the best auto loan for people with bad credit.

If you want to get an auto loan, it's important, first and oremost, to know what your credit score is. Your credit rating with the 3 main credit reporting bureaus -- that being TransUnion, Experian and Equifax -- is going to be one of the biggest factors (if not the biggest) in deciding what sort of interest rate you are going to get with your car loan. Since there may be inaccuracies on your credit report, you should take the time to go over your credit history and make sure there are no mistakes. You have the legal right to contest it, so make sure to contact the credit agency if you spot anything incorrect. These mistakes can lower your credit score and damage your ability to get a lower interest rate.

If your credit score is below 520, it's probably recommended that you do not get an auto loan because your potential lenders are essentially going to screw you sideways. Your interest rate can be as high as almost 30%, which is going to be absolutely astronomical in the grand scheme of things. In this case, when looking to get the best auto loan for people with bad credit, you should take the time to improve your score by 50 points or more, and then consider applying.

Another option to get the best auto loan for people with bad credit is to get someone with excellent credit to cosign your loan. This will enable you, despite your low credit, to get a low interest rate and a reasonable monthly payment. Keep in mind, however, that if you default on your auto loan, your cosigner will have to end up paying back the loan.

You might also consider going through a first-time car buyer program, if you've never purchased a car before, or buying a car at the end of the month. Car dealerships are much more likely to negotiate a good loan with you because they want to get as high a number as possible for the end of the month. You also might consider going with a bank or financial institution instead of a car dealership, as the latter is usually less honest.

Getting the best auto loan for people with bad credit is possible as long as you're prepared, do your research and do not let yourself be strung around by car dealers or lenders. Worst comes to worst, you might need to take some time to improve your score by a few points before getting an auto loan. Also, if you get an auto loan with bad credit and you improve your score later on, you can always consider refinancing auto loans, which will then give you the opportunity to lower your interest rate.