Hello. My name is Joe Summers. Welcome to my website about purchasing a vehicle from new and used auto dealers. When it comes time to buy your next vehicle, it really pays to know what to expect. With clear expectations in mind, you can navigate the buying process with confidence and get a great deal on a clean, functional vehicle. Missteps in the process, however, can leave you with a serious case of buyer’s remorse and a vehicle that just doesn’t live up to your expectations. So, spend your time on my site to learn everything you need to know about purchasing a car from new and used auto dealers.
Tips For Buying A Car When You Have Bad Credit
Many people need a reliable vehicle to commute to work and conduct day to day errands, but purchasing a car can be expensive. Few people have enough cash on hand to buy a decent car, so they have to finance their purchase. Unfortunately, financing a car can be a lot more challenging if you have poor credit. If you have bad credit, it is very possible to obtain an auto loan and buy a car, but you may have to make a little bit more of an effort to get everything done. Use the following tips to help your purchase a car if you have bad credit:
Check Your Credit Report
Even if you're pretty sure that your credit rating is not the best, it is still important to check your credit report before you begin the process of taking out an auto loan to buy a car. For one thing, it is not uncommon for credit reports to have errors that can lower your credit score. Having a clear picture of your credit will make it easier to know your position when it comes to financing and getting a loan. If possible, try to pay down some debt or anything that is in collections, since doing so can boost your credit score.
Get Pre-Approved
Before you head to a car dealership, it is in your best interest to get pre-approved for an auto loan. Many people believe that having bad credit means that no lender will give them a loan, but that is not the truth. There are many lenders who specialize in bad credit auto loans, and they can work with people with all types of credit challenges. When you arrive at the dealership, you can also work with their finance department. Many car dealerships have relationships with a large number of banks and lenders, and they may be able to offer you a loan with better terms than your pre-approved loan, even if you have bad credit. But getting pre-approved upfront gives you an idea of what size loan you can qualify for.
Know the Current Interest Rates
People who have very good credit can qualify for car loans with very low interest rates. However, those with bad credit usually have to pay a higher than average interest rate on their loan. Knowing the current average interest rates for auto loans can help ensure that you get the best deal possible. You may have to pay an interest rate that is higher than the average, but don't accept an interest rate that is more than double or triple the current average.
Talk to a lender to learn more about your bad credit auto loan options.