How to Buy a Car with Bad Credit
You’re pulling into your driveway and you can feel it. Something deep within you that says your car won’t last long. But as you caress the dash of your cherished Chevrolet Silverado, you think, “I don’t know how to buy a car with bad credit.”
If you think it’s time to put your car out to pasture, read on to learn how you could buy a car with bad credit.
Research What You Want
Before you start going to dealerships you need to research the type of car you want. Are you looking for something like you had before? Or do you want to change things up?
A good tip to use when figuring out how to buy a car with bad credit is to check out Consumer Reports. They have a lot of information on new and used cars. Plus, they often have reviews from other owners, so you’ll know what to expect with any make and model. Another great thing with Consumer Reports is that you can find out what others in your area paid. It’s a great way to avoid sticker shock.
“What if I want to buy a used car?” Try Kelly. The Kelly Blue Book, that is. Like its paper counterpart, the Kelly Blue Book website has a lot of information on used car prices. All you have to do is plug in the make, model, and condition of the car to get an estimate of its worth.
Check Interest Rates
One of the first things you should do is check the current interest rates on car loans. Then, when you have a solid number, check your credit score. By checking your credit score now, you’ll get to see where you are and where you should be. This will give you a better understanding of what kind of payments your credit score can snag you. The best part is that your credit score might not be as bad as you think. Oftentimes, you might build up this scary number in your head, only to find out it’s not so bad. It might not be the best, but your credit score can always be improved.
Get a Gas Card
The best thing to do when figuring out how to buy a car with bad credit is to get a gas card. This might seem like silly advice, but it can work. Here is what you do: Apply for a gas card or any other card with a low spending limit. Then, use it to only to buy items you can afford, like gas.
As you pay off the card each month, you’ll show you can make payments and raise your credit score. It’s a small life hack that can go a long way and shows dealerships that you’re responsible with payments.
Don’t Overspend
Another great tip on how to buy a car with bad credit is don’t overspend. It’s important that you keep your spending in check. Even if you’re not going to hop over to a dealership tomorrow, try not to rack up unneeded debt. The goal here is to keep your monthly bill payments affordable. That way when it is time to buy, you and your credit will be ready.
Consider a Larger Down Payment
By now you should have a decent idea of what you want and what it’s worth. If you have some time before you need a new car, start saving for a larger down payment. Bigger down payments mean a better interest rate and lower monthly payments. This would also be a good time to figure out what your “all-in” budget is. This is the highest amount of what you’re willing to pay.
Go to Your Bank or Credit Union
If you’ve crunched all the numbers and still don’t know what you can afford, get pre-approved. This means going to your bank or credit union to see the type of car loan they’re willing to offer. The bonus of getting pre-approved is that you’ll get an even better idea of what you can afford.
“Could I use USAA?” USAA is a great bank, and if you want to use them, why not? There’s just one thing to keep in mind. USAA has their own car buy services and are likely to recommend a car dealer from their list. If your dealer works with them, great. If not, just be sure to tell them who you’re thinking of buying from. This will save you the hassle of getting calls from their dealer list. No, thank you. Speaking of dealers, you should also see what financing your dealer has to offer. It might shock you to know that dealers can sometimes have the best interest rate around.
Read the Fine Print
No matter where you get your car from, you need to read everything you sign. This ensures you know the kind of deal you’re getting and won’t be surprised later. This would also be a good time to check out any extended warranties your dealer might have for used cars. If you can afford it, a warranty for a used car could save you a lot of trouble later.
Avoid Unneeded Extras
Okay, you know what you want, how much it costs, and what you can afford. Now comes the hard part. What are you willing to give up?
We know this is a hard question. One of the best things about owing cars is all the fun features that come with them.
But when you’re dealing with bad credit, you may need to forgo heated luxuries seats for now. Keep in mind this is not forever. Whatever car you buy will serve you well, but it won’t be your last. There will be plenty of time for you to improve your credit score enough so you afford all the extras you want later. One thing you could do is use the “gas card” method from before. Only, instead of getting an affordable credit card, you’ll be getting an affordable car. This will do two things:
1) It will show the credit world at large that you can make payments.
2) It helps you build a solid relationship with a dealer you can trust. So, when you’re ready for an even better car, you’ll know exactly what dealer to go to.
Buy a Car With Bad Credit from Dan Cummins Today!
Dan Cummins is Kentucky’s newest Chrysler, Jeep®, Dodge and RAM dealership! If you’re wondering how to buy a car with bad credit, call Dan Cummins at 877-661-2805 or click below to get the new or used car of your dreams. We are sure you’ll find what you’re looking for at our Paris, KY dealership!
How to Buy a Car with Bad Credit | Dan Cummins Chevrolet & Buick
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