Finding funding to buy a car is almost as major a task as finding a mortgage to buy a home. This is the case even for those of us lucky enough to boast a good credit rating, so for those with low credit scores and with no lump sum to use as a down payment, it is surely impossible. But, getting car loans with bad credit, and with no money for a down payment, is possible.It might seem that bad credit car loans are foolish for lenders to offer, but it is also true that not all bad credit ratings are a result of irresponsible money management. In many cases, it was something out of their control, with the state of the economy leading to reductions in income and even unemployment.However, when it comes to getting approval on car loans despite bad credit, there are some specific aspects that must be considered. And, top of the list is that fact that sourcing a financing deal from the car dealer is not a good idea.Why the Dealer is a Bad ChoiceIt stands to reason that when someone knows their credit rating is bad, they will take the first available financing option. Often, the dealers themselves are willing to grant the loan to make the car yours. But the issue of car loans with bad credit should not drive an applicant to the dealer option.The reason is that dealers charge higher rates than even the traditional lending institutions. A bank might issue bad credit car loan with a high interest rate, but the dealer will tag on an extra 2% or 3% to up their own profits. This is common in the car trade, with many dealers stating it is to cover their own admin costs.But, the question is why an applicant is so willingly pay an extra $50 to $150 per month just to get approval on car loans, despite bad credit. It would be better to just stick to the banks, in that case.Why a Down Payment is Not NecessaryAs we all know, a down payment is made to effectively seal a purchase, but it is also said to lower the actual loan sum needed and, therefore, the cost of the car loan with bad credit. But the truth is that there is no real benefit, and certainly no requirement, to make a down payment at all.In general, car dealers will make every effort to increase their profits, so the down payment will actually go directly into their bank account. And because of the increased interest rate, the borrower will be paying close to the full sale price through their bad credit car loan anyway.It is a bad sign if a dealer is pressurizing a customer to make a down payment. So, it is probably best to take your business elsewhere. The good news is that there are better ways to get approval on car loans despite bad credit - namely, online lenders.Online Lending OptionWith traditional lenders so expensive (though less so than dealer financing) the terms of the car loans with bad credit available online are clearly the best to opt for. The fact is that online lenders are famed for their lower interest rates, and more flexible repayment schedules, so their bad credit car loans are hard to beat.Still, it is important to get a preferred lender checked out before chasing an approval on car loans despite bad credit. Perhaps get a pre-approved car loan with bad credit, then all that is needed it to hand over the check.