You see ads for ”sign and drive” auto deals all year long. The end of the year is coming and automakers may ramp these offers up in order to lower taxable inventories. Before you apply for these loans with bad credit, it may be best to know what you may be facing before you stop by a dealership.
Sign and drive deals are actually a type of lease program. With most lease programs you have to put money down, pay taxes, and make the first month’s payment. With these deals, though, all you have to do is pay the taxes along with any title and license fees. Leasing is rarely available to bad credit customers and the sign and drive option is offered only to buyers with the best credit scores; therefore, bad credit customers will not qualify for a sign and drive lease deal.
This may seem discouraging, but there are many bad credit auto loan programs available. Lending requirements have been loosening and the supply of affordable cars is peaking once again. One bad credit auto loan could push your credit score up enough that you can qualify for better terms on the next loan you apply for.