Bad Credit Lenders

• The big advantage of this type of lender is that it is willing to work with people who have bad credit. If you have a bad credit score, there is a good chance that most traditional lenders will not extend you a loan. With a subprime auto lender, you can still get approved even if you have had a bankruptcy or foreclosure.
  
  

Application Process

• Many subprime auto lenders also have a very quick application process. Many promise not to run a credit check. This means that you will only have to provide them with basic information, including your employment situation. As long as you meet their other criteria, you should be able to get approved very quickly.
  
  

Convenience

• Many of these lenders also make paying your auto loan very convenient. You can often make payments at the same location where you bought your car.
  
  

Interest Rates

• The big drawback of working with a subprime auto lender is that you will have to pay a higher interest rate than with a traditional loan. These lenders have to charge higher interest to offset the greater likelihood of default with subprime borrowers.
  
  

Car Cost

• When you work with a subprime auto finance company, you essentially pay more for your car because of the higher interest and loan fees. If you can save up and pay cash, you'll be better off.