Buying a Car with Bad Credit

August 23rd, 2016 by

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Buying a car can be exciting, but it can also be incredibly stressful—especially if you’ve had some financial difficulties in recent years. Hard financial times can fall on any one at any time. There are a lot of auto dealers out there that advertise themselves based on their ability and willingness to give out loans to people with bad credit, but at the end of the day it’s still very important to take the right steps to ensure you get the best deal on the car you want. Here are some of the basic things to remember when buying a car with bad credit.

1. Shop Around.

It’s easy to think that because you don’t have a good credit score you’ll have to settle with whatever you can find, but you should go into the auto shopping process with the same set of goals as someone with good credit. Find the best car at the best dealership with the most affordable price and financing available for your situation.

2. Avoid Fraud.

It’s very common for special finance lending to show up with falsifications, counterfeit signatures, and other forms of fraud. This can happen at a variety of different points along the way, including with finance managers, salespeople, and finance brokers who want to get the deal done, as well as the buyers themselves. Never knowingly take part in a transaction like this, and read through all of the information on your contract to be sure that every piece is correct- and legal. If you don’t, you could be looking at criminal charges.

3. Skip the “No Credit, No Problem” Dealerships

You’ll find a lot of dealerships out there that tailor their messaging and financing to people with bad credit. At first glance, it can seem really appealing to someone in a rough financial patch to rely on this kind of lender for a new vehicle. However, it’s best to try to avoid these kinds of dealerships. They often charge the highest interest rates, prices, and dealer fees possible, essentially taking advantage of people who are out on their luck.

4. Choose Your Dealership Carefully.

Regardless of your financial situation, you deserve to work with a trustworthy dealership. Look through consumer reports, ask friends and family, and shop around at a variety of different dealerships before deciding on the right one for you. If there’s any way possible, a good dealership will work with you even if you don’t necessarily have the best credit.

Posted in Advice