Car shopping can be a stressful experience, but it doesn’t have to be if you have bad credit. Many car dealerships understand that consumers with less-than-stellar credit scores can be difficult sales prospects. This is why many auto dealerships offer incentives to those with low, or bad credit to encourage them to shop with them rather than another potential car buyer. So how do you go about car finance when you have bad credit? Read on for some advice about how to get started and where to find the best car deals for bad credit car buyers.
- Research the Car You Want.
Before you shop for a car with bad credit, it’s important to research the vehicle you want. There are many sources of information that can help you make an informed decision about what makes up your ideal car. You can use these sources to find out if the cars with bad credit have features you need and want. Today, there are plenty of ways to gather information on different models and sets of cars, including online databases like Kelley Blue Book.
- Know What You Can and Can’t Buy With Bad Credit.
Before you make a car purchase, it’s important to know what you can and can’t buy with bad credit. You might be able to buy a car with bad credit if it has an annual mileage below 10,000 miles. However, when buying any vehicle that is older than six years old, you need a good credit score. Cars with a higher value (more than $35,000) also require good credit because they are more difficult to finance. If you have a bad or fair credit score and want to buy a used car, you may be eligible for car finance in some financial institutions and car dealerships. Keep in mind that getting approved for a loan won’t improve your credit score. If your main concern is the payment terms of the car loan (e.g., how much will I pay per month), then you should try to get approved for financing from dealerships that don’t charge set up fees or dealer markup on loans.
- Check out the Dealer’s Used Car Inventory.
Auto dealerships with a used car inventory are the best place to start when you have bad credit. These dealerships understand that consumers with less-than-stellar credit are difficult to sell cars to, so they offer discounts and incentives for those who might not be able to afford new cars from traditional automotive retailers. So what should you look for in a dealership with a used car inventory? The most important thing is to find one that has low-interest financing options. A low-interest rate is key, as it will save you money over time on your purchase. Additionally, a dealership that offers warranty options may also include maintenance packages and other perks for each purchase.
- Get Preapproved for a Car Loan.
If you’re thinking about buying a car but have bad credit, the first step is to get yourself preapproved for bad credit card finance. A preapproval letter lets you know what rate of interest and loan amount you can qualify for before going in person to buy a car. You might also consider applying for a loan through your bank or credit union as they are more likely to offer better rates on loans than most car dealerships. You will also need to make sure that the dealership is willing to work with your situation and not use one of those pesky financing gimmicks that could end up costing you money in the long run.
- Don’t Be Afraid to Negotiate.
If you want a car but you have bad credit, you might be hesitant to negotiate. But it’s important to remember that your credit score doesn’t determine whether or not the dealership will make an offer. If you feel confident and willing to negotiate, they may be able to give you a better deal, or at least one that is more in line with what you can afford. Just remember that some of the incentives dealerships offer could depend on how much of a negotiation you’re willing to do. If you don’t try negotiating and the dealer only offers incentives for low-balling bids, then the incentive won’t apply. So if you don’t put in any effort during negotiations, then those incentives won’t work for you.
Conclusion.
Now that you know these tips for buying a car with bad credit, you’ll be on your way to purchasing your dream vehicle. A lot of people who want to buy a car with bad credit stay away from it because they think they can’t get one. But, if you know what to look for, you’ll be able to find a car that fits your budget and your needs. As always, research and do your homework before buying a car. You can do this the easy way by using CarBuyingTips.com – our free car buying guide – to help you find the perfect vehicle.