Buy a Car with Bad Credit

Posted by admin under Bad Credit Loans

Are you asking, “Can I buy a car with bad credit?” Odds are you’ve been turned down by traditional lenders or new car dealers.  I know how frustrating this can be I had it happen to me for years.  Even though I had a really good paying job when I was younger I had absolutely no good credit.  Basically I had a credit card I had defaulted on and paid off when I was 18 and then just wrote off using credit for the next 5 years.  This is not good for the credit score, I don’t recommend it.  However, I still needed to buy a car with bad credit.  How to buy a car with bad credit depends on what type of car you need to buy.

Buy a New Car with Bad Credit

If you are set on buying a new car you don’t need to be looking for the best car because the new car prices are relatively set.  What you need to do is find the dealer that is hungry.  If you can find a dealer that really needs a sale they will push on their financial wing to “find a way” to make it work.  It’s amazing how effective this can be.  My first new car was a Honda S2000 just because I convinced the guy I could make the payment and he hadn’t moved one that year.  The lot 15 miles away wouldn’t even let me test drive it.  Not all dealers are the same.  Your other option to buy a car with bad credit is to find the dealer’s with the connections.  The only real way to discover this is find other people who have bought cars with lousy credit.  They will usually tell you that so and so dealer never thought twice about loaning to them.  Usually these dealers have “ins” with the big banking services.  They just call the bank of choice and fast track you through the loaning process.  It really is a work of art.

Buy a Used Car with Bad Credit

If you need to buy a used car you’re in luck.  These types of cars are generally not too hard to find a loan for even with bad credit.  The main reason for this is the fact the used cars are actually priced much closer to their actual worth.  This makes the loan safer for the lender because they won’t lose as much if you quit paying on the loan and they have to repossess the car.  Often used car dealers will finance the cars themselves just to keep the car sales coming.  Many used car dealers make much more money by financing then they do from selling cars.  This concept even crept into more major companies like Ford or GE which actually was almost considered a bank by the federal government because of its practices.  There are also special lenders who charge higher interest rates and small fees for loaning to high risk borrowers for used cars.  Hopefully, this article will help you buy a car with bad credit or at least in getting a loan that won’t haunt you for the rest of your life..