Be Smart in Choosing Your Vehicle
You may not have any choice over how your credit rates, but you do decide on how much financing you need. Naturally, the less you need, the easier it is to get. So look to lower how much financing is required by buying the base model, getting used instead of new, or leasing.

Avoid getting add-ons like rustproofing, sealant, or an extended service contract. Many manufacturers even recommend you don't get rustproofing as it's either unnecessary or may actually cause problems. And if you do want an extended service contract, shop for it. You don't have to buy it from the dealer that sells you the car and so you may get it cheaper elsewhere.

Buying or Leasing
One of the decisions you have to make when you're face with bad credit auto financing is whether you want to buy or lease. Most people do like the sense of ownership that buying a car brings. But if your main concern is to have a vehicle with low monthly payments, then leasing is a good choice.

There are two types of auto leases; close-end and open-end. When a closed-end lease expires, you have no further obligations except for minor termination fees. But when an open-end lease expires, you pay the difference between the projected price in your contract and the vehicle's current appraised value. Due to this open liability, most leases are the closed-end kind.

Auto Leasing Tips
However, even with a closed-end lease, it's a good idea to consider gap insurance. This covers the difference between what you owe on the lease and the car's value if it's wrecked or stolen. It doesn't do much good to save money on your bad credit auto financing and then have to pay it back when a mishap occurs.

When you're looking to lease a car, you should handle it like you were buying. You want to get good value so be prepared to negotiate all the lease terms. Getting a lower price can really help cut your monthly payments. Question all the fees, both those at the start and end of the lease. Find out how the meaning of the terms used, such as what is considered, "normal wear and tear". And make sure the auto's warranty covers the length of the lease and your expected number of miles.