Bad credit auto lenders often team up with automobile dealers for the funding arrangements. Many car dealers have the facility to help out people with bad credits so that they are able to procure a loan for a new or used vehicle. Bankruptcy is eating away at people and businesses everywhere, particularly because of the recent recession that hit everyone hard. However, that should not mean the end of the road for anyone when and starting afresh is possible with the help of car loans despite having a bad credit. An automobile loan can be sanctioned in such cases if proper documents and proof of current situation and regular income are provided. When applying for a car loan in such a situation, it is always a good idea to attach a letter to your credit report when you send it to the credit bureau, to explain the circumstances that led to the bankruptcy. Car loan agencies often sympathize with genuine cases and are willing to lend a helping hand and money to people with bad credit.

A poor credit history usually attracts very high rates of interests when trying to procure a car loan. However, financing agencies that specialise in auto loans for poor credit will lower the interest rates significantly to attract more loan applicant and thus increasing their profits. Once a person furnishes all the relevant documents and proof of address, regular income, etc. he will be able to procure a bad credit auto loan without much problems.