Bad credit auto loans are specially designed for individuals who can't get pre approved for an auto loan with customary lending sources; for instance credit unions, local banks, or the lending arms of auto manufacturers. These lending sources generally don't lend to individuals with low or bad credit history, recent bankruptcy, low earnings, low down payment, or previous vehicle recovery. That being said, many dealerships have a special finance department in place to facilitate auto loans for bad credit for people that have a less than perfect credit history.