Most people, at some point in their lives, will have to buy a vehicle of some kind. And unless you happen to be very financially comfortable, odds are, you will not be paying for the car in one lump sum or in cash. The average person has to take out an auto loan if they expect to be able to purchase a car. The great thing about loans is you can repay them a little bit at a time until they’re paid off fully, but sometimes it’s a slight difficult to borrow money if your credit isn’t stunning. The thing with banks is if they see you aren’t that good at repaying your loans, they will not see giving you a car loan as a wise investment for them because they may very well not get their money. They don’t give a crap if you need a car, but have bad credit from having been laid off and becoming delinquent on bill repayment…if they don’t see that money coming back in their pocket, they aren’t going to help you.
This is not, however, an unbeatable obstacle; thousands of people with atrocious credit can still manage to get ca r loans; they just happen to talk to the right people who can pull the right strings. And many car dealerships specialize in selling used cars to the credit-challenged too, so it’s just a matter of doing a bit of shopping to find what you need. Believe me, it’s not as hard as it seems. But I would like to propose a few hints as far as obtaining a car, in spite of the state of your credit.
• Find out what your credit history looks like before doing any shopping or buying. Find out just how good or bad your credit is and you will be able to progress from there as far as talking to banks and dealerships, as well as making a purchase.
• When you find the Car Of Your Dreams™, look into the interest rates and the monthly payment amounts. Sometimes these can look a little scary, but sometimes they can be negotiated a little to be a better fit for your budget. Apply wherever offers the best rates.
• Try and scrounge u p a down payment; most car dealerships – even the ones who sell to folks with bad credit – will not sell you anything if you don’t invest some of the asking price first. The bad part is if you’ve had to take out a bad credit loan, your interest rates will be higher than someone whose credit is good.
• Think about how much you can afford each month as you repay what you’ve borrowed. The less you pay per month, the longer it will take to pay the loan off, and the more interest you’ll accrue; so, pay as much as you can afford to fork over.
• Bring some sort of proof of wages or employment with you…it may be needed, especially if your credit is in the toilet.
• Not as much a tip on loans as on shopping for a vehicle: don’t buy a car just because it looks pretty. It’s good to take someone with you, especially if they know anything about cars, to help you find a car that will serve its purpose well an d fit within your budget. Car dealerships may let you buy a car with a bad credit auto loan, but that doesn’t mean they won’t sell you a piece of crap. Don’t be bamboozled, because if you end up with a junker car, you still have to pay for it.