They offer their services to high credit risks by inflating the selling price and interest rates of the loans .
For example , they can sell a $5,000 car for $10,000 and require a $4,000 down payment and an interest rate of 20% . In this scenario they only need to collect payments of $1,000 to break even on the deal .
If you don't pay the payments they can repossess the car and you lose your down payment . If you make the payments they maximize their profits .
The others answers are correct on how the auto sales work, but I just wanted to add that your best bet would be to get your credit fixed. I used to have bad credit, too. I worked with a credit repair company and got it cleaned up. The process takes a few months, but the outcome is incredible. Check out the site of Unified Credit Services, they are the company that I worked with and recommend.
It simply means they are willing to work with individuals with poor credit scores. It also means that you'll have to pay a premium, i.e. a higher interest rate.
it means they will probably give you a loan - but will want a large down payments and/or charge you a very high interest rate
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