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As a proportion of total car financing, subprime auto loans are increasing, according to Experian. When a  buyer has a spotty credit record and a low credit score, a subprime car loan is often the only option. In 2010, this bad credit auto financing represented nearly 20 percent of all new-car financing, an approximate three percent increase from 2009.

Experian considers a 670 or lower credit score to be subprime. According to GM Financial Chief Credit and Risk Officer Steven Bowman, consumers cannot do much to quickly increase their credit score. However, there are steps car buyers can take over the short-term to increase their chances of obtaining financing.

They may even be able to lower the cost of bad credit auto financing.

Consumers should know their credit score before they shop for a car. Interest rates can be affected by this score, even if an individual has good credit. It costs around $10 to get a credit score from one of the national credit reporting bureaus.

In addition to this score, the creditor will look at the credit report, which reflects credit history, so consumers should familiarize themselves with their report.

Someone considered a prime candidate for a subprime car loan usually has experienced certain situations. Accounts in collection, bankruptcy, a repossession of a car or home, or serious problems with debt management are common issues.

These individuals should review the credit report to see whether there are small balances or delinquent payments that can be handled.

Another way to secure a car loan that does not feature a subprime rate is to make a large down payment. A payment of at least 20 percent should do the trick. An easy way to get into favor with a lender is to have documents like recent paystubs, a current utility bill, and a current driver’s license ready.