Bad credit borrowers have seen an expansion in the availability of loan products they can now apply for. With the widespread expansion of independent loan brokers and online loan specialists, competition has reached an all time high for car credit business. This increased competition has caused many lenders to focus on offering products to borrowers who have bad credit on their record. Secured loans, such as homes and cars, usually offer the best rates and terms for bad credit borrowers as the collateral offered by the borrower serves as security to the lender. Bad credit car finance rates are obviously not quite as enticing as the 7 to 8 per cent rates commonly obtained by good credit borrowers, but they are definitely better than ever before. As importantly, they are more available. Some loan brokers promote a 90 per cent or so acceptance rate for bad credit customers.

For along time, car customers have been somewhat at the mercy of high cost car dealer financing. Some borrowers were unaware that they could explore other loan options. Many believed they were required to accept dealer loans to purchase their cars. Others just lacked knowledge of the broader loan market. Greater knowledge and wider selection is more prevalent in today's finance market because of the expansion of brokers and online motor loan specialists. Anyone can now go on a specialist web site, enter some basic background details, and have the broker search their vast provider network for the best products and rates.

Because of the depth of financing competition, many lenders have begun to focus on bad credit car finance as a way to grow their business. Bad credit borrowers can get rates in the 10 to 15 per cent range, at times, depending on just how bad their credit troubles. Borrower who have faced County Court Judgments (CCJs), arrears, or defaults are even finding loan products designed for them. This has given many people hope for financial stability that was previously unavailable to them. Independent brokers are able to efficiently narrow down bad credit car finance products based on consumer information. This helps make the search process efficient and helps borrower know what interest rates they can obtain.

The ability to work with loan brokers before visiting the car dealership is a huge advantage for borrowers. Bad credit borrowers are no longer at the mercy of dealer financing that either cost high amounts of interest, or resulted in repossession of the auto in the event of non-repayment. Car buyers are more equipped than ever when they begin looking for their new or used car.

Consumers need to protect their credit by avoiding the pitfalls of court judgments or bad credit. However, for those that cannot go back in time, bad credit car finance offers a more manageable motor debt solution. Car buyers can now focus on negotiating a car dealer without the pressure of taking on expensive debt. This makes the potential for finding a great car value much greater.