When people find themselves behind the credit score eight ball, they often do not know their best options for buying a car. Many just throw their hands up and assume that a buy here/pay here or rent to own car dealer is their only option. That discouraged attitude could prevent them from ever improving their credit score.
Buy here/pay here and rent to own dealerships are nearly identical. You buy from the dealer and make all of your payments at the lot where you picked out the car. Generally speaking, you are looking at high mileage, low quality cars. The part that may actually hurt your credit further is that these dealerships rarely report your loan and payments to a credit bureau. You could make your payments on time for two years or more and it will look as if you have not had any credit experience during that time.
Today, many companies are offering bad credit auto loans that will be reported to the credit bureaus, helping you improve your score over time. Granted, these programs require a larger down payment than you might be prepared for and the interest rate is high, but it is not higher than you will pay at a rent to own lot. Luckily, you will be able to search from better quality cars and improve your score with every on time payment. A single used auto loan can help to lift the despair some buyers feel.