If you have poor credit, you can turn things around. You can still purchase a vehicle. One of the ways that you can purchase a vehicle and turn your life around when you have bad credit is by getting in-house financing through a dealership that works with individuals who are in bad credit financial situations.  

Most traditional auto loan lenders, such as banks and credit unions, require you to have a high credit score. You are unlikely to get financing through a traditional credit source with a low credit score. When you work with a dealership that offers in-house financing, you are working directly with the dealership. They are acting as both a dealer, selling you the vehicle, and as the lender, offering you the financing you need to purchase the vehicle. In-house or dealership financing is a little different than working with a bank.  

Need a Down Payment 

With in-house lending, as the dealer is taking on the financial risk themselves, you will need a down payment. A down payment is money you put down toward the purchase price of a vehicle. This shows that you have the ability to save money; it also makes you more financially invested in paying off the rest of the vehicle.  

For example, if you are trying to buy a used vehicle that costs $15,000, and the in-house dealership asks you to place a 20% down payment, that means you would need to have $3,000 in cash that you could pay that day towards the purchase of the vehicle. The exact down payment amount will vary; you can always ask what size down payment an establishment requires.  

Proof of Work 

Next, with in-house lending, you generally need to have proof of income, which can be provided by sharing copies of your most recent paystubs. How long you have to go back in sharing pay stubs can vary from one dealership to the next. It is a good idea to have access to at least a couple of months' worth of pay stubs so that you can show that you have a steady source of income. 

Basic Identification 

You will also need to provide some basic identification, such as a valid driver's license, proof of residency, and a working phone number. You could provide a rental agreement or a copy of the house deed for proof of residency. A dealership is going to want to know where you live and how to get ahold of you.  

If you have bad credit, many dealerships offer in-house financing, where they both sell you the vehicle and lend it to you. Keep in mind that you will be purchasing a used vehicle with this type of financing. Purchasing a used vehicle isn't a bad thing; it will allow you to purchase something that you can afford. 

Reach out to a local dealership to learn more about bad credit car financing.