How to Buy a Car With Bad Credit
When it’s time for new wheels, you can’t avoid buying another car. This is especially true if you live in an area that doesn’t have an abundance of public transportation. Unfortunately, not having a car means bumming rides or paying expensive Uber and Lyft prices.
Although you may feel like you can’t get a car because of your bad credit, that’s not necessarily true. Are you curious to learn how to buy a car with bad credit? Well, continue reading the content below.
Buy a Car Cash
When you have bad credit, one of the easiest ways to bypass that problem is to buy car crash. Depending on your circumstances, you may not be able to save up to get the exact car that you want. But there are plenty of people who are willing to sell their car from anywhere between $3,000 to $6,000 on average.
Over a few months, or even a year or so, try to save up that a few thousand dollars. If you choose the cash route, just have someone with you who can check the car to make sure that it’s not a lemon.
The last thing you’d want is to buy a car and it stops working on you shortly after purchasing it. Luckily, this method has worked for many people and it’s a great way to get in a reliable vehicle without going through the credit process.
Check Your Credit
If you don’t want to buy car crash, that’s perfectly fine. But if you plan to go into a dealership, you need to prepare yourself first. Check your credit report to get an idea of all of the debts you have. If you notice any errors for accounts that don’t belong to you, dispute those so they’ll fall off of your report.
It’s also a good idea to familiarize yourself with your credit score. That way, you’ll know whether or not you’d have to pay high-interest fees based on the health of your credit. When shopping for a car, you don’t want any surprises.
Pay Off Debt
If you notice that your credit is poor, it’s in your best interest to pay off some of your debt. Buying a car with bad credit is a really bad idea. The car dealership will either reject your offer or they’ll hike up the prices. You may find yourself paying $400 or $500 a month for a car note, which includes very high-interest rates.
That’s no fun, and it’s a huge financial burden. Paying a hefty car note for three to five years will definitely take its toll on your pockets. Instead of rushing to buy a new car, plan for the future. Don’t let a temporary inconvenience mess things up for you long term.
Put Down a Large Down Payment
If you’re wondering how to buy a car with bad credit at a dealership, it’s with a larger down payment. One of the best ways to bribe a car salesman when you have poor credit is with extra money. This is a good compromise for individuals who aren’t comfortable with buying a used car from another person.
So instead of saving $5,000 to buy a potential lemon, you can put that money towards a down payment on a brand new car. This will help you to show some type of financial stability. It’ll also knock down some of the costs that you’ll have to pay overtime due to high-interest rates.
Look for an Affordable Car
When you have bad credit, it’s not a good idea to shop for the most expensive car on the lot. This is the time to get a car that’s reliable and that’ll get you to your important destinations. You’ll have to bypass all of the bells and whistles until you can afford a better vehicle.
Before going to the dealership, create a budget. Figure out how much of a car note you can afford with the income that you receive. Then, calculate the price range that you need to stick to in order to meet that monthly payment mark.
While you’re at it, don’t forget other expenses like car insurance. Those expenses will also hike up your monthly vehicle cost. You may even benefit from buying a car that’s less than what your budget allows.
Apply for a Bank Loan
You’ll probably have a better chance of getting a bank loan if you have bad credit. When you go straight to the dealership, they generally hike up the prices for people with poor credit. However, many banks and credit unions are sometimes lenient towards their loyal customers.
They also have better interest rates than car dealerships. If you clean up your credit a bit, try the bank first and then go to the car lot. It’ll be a lot easier on your pockets to pay the bank back rather than an auto loan provider.
If you think you’re ready for a new vehicle, check out Gates Auto to shop through their inventory of cars.
Understanding How to Buy a Car With Bad Credit
If you have bad credit, you don’t have to feel stuck without a ride. As you can see, there are many ways of getting a new car— even with less than perfect credit.
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