In Delaware, even if you have bad credit, you can still get an auto loan for the car of your dreams. Throughout the state, banks who offer bad credit auto loans partner with both new and used car dealerships in an effort to service as many customers as possible. Potential borrowers can either search for a bank in Delaware that offers bad credit auto loans or simply head to the dealership of their choice and speak with the finance manager about some of the options that are available.
Before heading to the dealership, you’ll likely need to bring the following requirements in order to qualify for a loan:
Delaware Car Buying Requirements
- Pay stubs – Bring three or four of your most recent pay stubs to show that you have sufficient income to pay back the loan.
- Proof of residence – Proof of residence is often required by Delaware banks can be in the form of a utility bill or apartment lease.
- Downpayment – While not always required, many banks will ask for a nominal downpayment for the auto loan.
First, you’ll need to know what DMV fees must be paid to the dealer, and how much you’re expected to pay. These fees will differ depending on whether you’re buying a new or used vehicle, and what type of vehicle that is. Some of the more common fees include renewal fees, temporary tag fees, inspection fees and more.
The Delaware DMV also requires that dealers have buyers fill out specific forms when purchasing a new or used vehicle. For individuals purchasing a new vehicle, the DMV requires that a title be issued within the first 30 days of the sale. The same applies for transferring a title from the buyer to the seller. Other forms that are required by the DMV include a Bill of Sale, a Report of Sale that is located on the back of the registration card and proof of liability insurance for the vehicle.
When the vehicle is bought using a bad credit auto loan authorized by an auto finance company, the back of the title must include the lien holder’s information.
Before leaving the dealership, make sure that you have signed copies of all the paperwork that was completed. It’s best to follow up with the dealership and the DMV to ensure your vehicle is properly registered.
Driving Conditions in Delaware
While Delaware is a relatively small state, there are plenty of crowded cities that offer various types of driving conditions.
Overall, Delaware receives a significant amount of snow during the winter months, which can make driving stressful. To make sure you are fully covered should an accident occur, it’s best to purchase GAP insurance for your bad credit auto loan.
The biggest city in Delaware is Wilmington with a population that exceeds 71,000 people. As a major financial and business hub, thousands of people commute into the city every day for work, causing major traffic delays along highways. Street parking is often difficult to find, so it’s best to pay for a parking garage to avoid the headache of driving around in circles.
Dover and Newark, the two second largest cities and located to the south of Wilmington, have their fair share of traffic difficulties as well. Newark is home to the University of Delaware which adds thousands of students to the city’s population every year and creating more of a traffic headache for motorists. Avoid the downtown area during rush hour, especially if school is in session.
Regardless of Credit History, there are Choices
Regardless of your credit history, there are a number of banks in Delaware that are willing to help you get the car of your dreams. Large dealerships will likely have more financing options than smaller dealerships however, smaller dealerships might be willing to offer in house financing to the right customer.