Re-Establishing your credit through bad credit/no credit auto loans is like ...

Getting car insurance for the first time. Your insurance premiums are high initially until you prove your credibility as a driver. Then as each year passes as you drive incident free your insurance premiums go down.

If you have had credit accidents / challenges  your interest rate for a bad credit / no credit auto loan is higher because you are, in the eyes of a lender, a credit risk. As you make your car loan payments on time you are at the same time improving on your credibility with the lender and of course your credit bureau which means when it is time to replace this car your interest rates will go down.

Resources

 www.urgr8ride.com

www.squidoo.com/best-auto-loans-bad-credit