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Helping Car Buyers with Bad Credit and No Credit Understand Subprime Auto Financing

Car dealers encounter consumers every day with diverse credit scores ranging from great credit, to bad credit, to no credit. If you don’t offer a subprime financing option, you may be losing customers.

Credit-challenged car buyers are often denied credit approval by traditional finance companies, so it’s important that your customers know there is an option to receive subprime auto financing, which is specifically- tailored to meet the needs of consumers with bad credit or no credit. Dealers on the Credit Acceptance program can offer credit approval to every customer, which means selling more cars and making more money.

Since many consumers do not understand subprime financing or know that it’s even available, it’s important that you are able to educate potential customers about their vehicle financing options regardless of their credit history. To help potential car buyers with credit problems gain a better understanding of what subprime financing is and how it works, here’s some information you may want to share with them:

What It Is

Subprime auto financing is credit available to consumers who have poor credit history (bad credit or no credit).

Interest Rates

Subprime auto financing and car loans typically have higher interest rates because the risk of repayment is higher. Dealers can emphasize the importance of making on-time car payments, which may enable the car buyer to improve their credit score and eventually move on to traditional financing with lower interest rates.


If you’re a dealer who’s interested in expanding into the subprime market, visit our website and sign up to learn more about how you can become an enrolled dealer on the Credit Acceptance auto finance program.