Choosing the Right Bad Credit Auto Dealer

December 7th, 2015 by

Top of Post

Trying to find the right bad credit auto dealers might be a little difficult, but it isn’t impossible. It just takes a little searching and know-how, and you will be on your way to financing a car in no time. There are some bad credit auto dealers out there that are looking to screw you, but not all of them are like that. Thankfully, there are ways to ensure that doesn’t happen to you. One thing you can do to help with finding a good bad credit auto dealer is to get your own credit report. There are plenty of ways to get your own credit report, this way you are guaranteed that your credit score is done properly, and you can walk in knowing that your credit score is correct.

In With the Good, Out With the Bad

First and foremost, on an instinctive level, trust your gut. If something makes you feel uncomfortable or you feel like you are being forced into something, get out of there. Because chances are, you are trying to be forced into something. A tell-tale sign of a bad credit auto dealer is an auto dealer that wants to offer you a deal that will stick you with a low interest rate. “But how can a low interest rate be bad” you say? Well, I’m glad you asked! If you are in a situation where the dealer offers a low interest rate, chances are they are looking too make money off the big fees associated with a repo for their major source of income. Miss one or two payments on a loan and BAM, you are out of money on an expensive downpayment and out of a car within half a year.

Stick to the Trusted Auto Dealers

Don’t just go out there and find the closest bad credit auto dealer, do some research and asking around in your area to find out who the trusted ones are. Good, bad credit auto dealers will finance you for a higher interest rate, and you want a higher interest rate for two reasons. One, it shows that the dealer wants to actually help you long-term. They are giving you a loan with a high interest rate because that is how they will make their money, not off a repo, so they are in it for the long-haul just like you are. Two, it shows that they are worried just as much about this investment as you are, the high interest rate serving as a form of assurance for them that they will get their money over that period of time. The reasons are kind of one in the same, but that interest rate does serve two purposes.

Another common tell-tale sign of a bad credit auto dealer is when a dealer implies that you need to buy extended warranties or other expensive and useless add-ons if you want to be financed. The reality is, you don’t need any of that stuff for financing or for your own reasons. All you need is a car to get you from point A to point B, am I right?

Travel in a Pack

It would not hurt to have an extra pair of eyes and ears when going get a bad credit loan from an auto dealer. Read up on red-flags and then let your friend know about them, that way if your head gets laden down with technical jargon, your friend can be there to catch anything that might slip by you that seems fishy.

In general, just be cautious and take your time. No one is forcing you to walk into a certain dealership, if you feel that you are being tricked or forced into something just leave. There is no one stopping you, and nothing is legally binding unless you start signing papers.