Sub-prime car loans are given to people with a poor credit history and who are unable to get car finance at the industry standard rates.

Sub-prime financiers are institutions that offer loans to buyers that have a bad credit history and do not fit the bill for the low interest rates that care standard for car loans. Some financers will even offer 0% interest rate for the first 6 months or so if the credit history is good. However, borrowers who do not have the right credit rating are hard pressed to get a car loan and for them sub-prime lenders offer loans at higher interest rates.

The subprime car loan would usually entail a detailed credit history check followed by an approval that is considered risky. The collateral held would be a larger down payment and a interest rate that goes as high as 18%. Yet, most financers will allow the option of refinance at the end of six months if the credit rating improves. This sort of car loan allows people with bad credit or little option of affording a car to get a car.

Financiers that provide sub-prime borrowers with a loan are easily available online and have the ability to give you a deal when most financers do not. Shop around for subprime car loans online and you will have financers who are willing to lend at different rates. Do your research and you will be able to get a rate that qualifies you for getting a car and in the end you may get a batter rate then expected.