Based on the thinking that the right approach to financing a vehicle can help subprime buyers get their credit back on the right track, Edmunds.com offered four recommendations that dealers can share with consumers to help with the process.

Those four suggestions included:

1. Run your credit report. AnnualCreditReport.com offers one free report per year from each of the major credit reporting companies. The report will help you identify “risk factors” in your history — such as old debts and unpaid fines — so that consumers can fix them. Edmunds.com recommended taking this step at least three months before people plan to buy so that they can take action on any outstanding items before engaging with the dealership and other lenders.

2. Get pre-approved for a loan. If the buyer’s credit is bad, they can expect to pay a high interest rate on the loan. But the site said that doesn’t mean consumers shouldn’t shop around for the best possible rates. The site mentioned people should check with their bank or credit union since they may be more willing to approve if the consumer already has an existing financial relationship.

3. Show that you’re a good credit risk. When consumers apply for financing — especially at a dealership — they should bring proof of improved financial stability. These items may include a recent pay stub, a utility bill and a list of personal references

4. Stay well within your price range. Just because a consumer qualified to buy a $22,000 midsize sedan, that doesn’t mean they should buy it. For example, if the buyer scales back and purchases a $17,000 compact sedan, he or she will free up $100 per month. This is money they could use for gas, insurance or other bills.

“Contrary to popular belief, there are a number of reasons why a lender would help somebody with a troubled credit history to buy a new car,” said Edmunds.com consumer advice editor Ronald Montoya.

“If you do your credit homework, shop within your price range and make all of your payments, you'll not only improve your credit score but you’ll also practice positive finance habits that will serve you well for years to come,” Montoya continued.