READ THIS: If You Are Looking For Auto Loans For Bad Credit And Don’t Want To Get Raked Over The Coals
The latest news, tips, and information on getting auto loans for bad credit and what most car dealers refuse to tell you so you can succeed without paying huge fees.
There comes a point in time when you are left with a serious problem. You need a new car. It is almost impossible these days with the urban and suburban sprawl to get anything done without a car. So what happens when you know you have reached a tipping point of sinking more and more money into that jalopy you have been riding around in? Even worse, what if you have some dings on your credit report?
Now you don’t have a car you can rely on to get you to work and back, much less something to use to run to the grocery or video store and back. There are ways to get a new vehicle with damaged or bad credit. You may not always like the terms and conditions, but it can be done.
One thing you have to look out for is the finance department. Believe me the sales person and managers all want you to buy a car. The problem will come when you go to do the paperwork.
One suggestion is to be completely honest with yourself about your situation and try to find financing before you go to the dealership to kick the tires. Human nature being what it is, you will look around, find the “perfect” car only to find out that you will not be able to buy it.
So it pays to do some research. See if you can get copies of your credit report and credit scores, that way you will know exactly what your situation is before you walk onto the lot. Call the finance department of some auto dealerships and tell them your score and what you can afford for a down payment. Not everyone will be helpful, but you should be able to find someone who can tell you what you can and cannot afford.
If you are going to go into a car loan with less than stellar credit you need to be prepared to have to plunk down more money than most other people and you need to come to terms with the fact that you will be paying a higher rate.
Here is the important part in this process, don’t get so caught up in a deal that you lose sight of how much money you are paying and under what terms. Some finance departments will try to sell you a deal on the idea that you can refinance with them a couple of years later. This can sometimes be done, but only if your credit improves dramatically before then. It is much better to shop around on the internet and secure financing before you go to the dealership. Pick out the car in the price range you can afford with the down payment you know you can use to finance the vehicle, and refuse to be up sold.
If you have credit problems, now is the time to be as frugal as possible, not to get suckered into a situation that will destroy your credit even further. If you cannot make the payments on this new vehicle it will get repossessed and good luck getting an auto loan after a repossession. It can be done but the terms and interest rate will make other deals look like charity.
Once you have secured competitive financing make sure you bring in all the documentation you need to secure a loan. Most dealerships will require more documentation for subprime or high risk loans, so don’t forget your pay stubs and other records that can prove you are worth the credit risk.
Be realistic with your expectations, if you know you have fractured credit don’t even entertain offers by dealerships that say they are different and can get you into a vehicle with zero down and zero out of pocket. More than likely they will sell you on a much more expensive vehicle than you had planned on and will try to hard sell you on making a gigantic payment at an exorbitant rate.