Are you thinking of buying a car with bad credit? You are not alone. Many people today are in the same situation. However, there is a right way to buy and a wrong way to buy a car with bad credit. We will discuss tips below that can help you with buying a car with bad credit.
Go into a dealership or car lot prepared. Research the going interest rate for the vehicles you are interested in before walking into a car sales lot. A common trick salesmen will do is raise interest rates so they will make more money and will convince you the rate is so high because of your credit. Although high interest rates are normally associated with poor credit, it is negotiable just like the price of the car is.
When buying a car with bad credit, always make sure dealers have everything in writing. Many times salesmen and finance managers will tell you they can offer you a low interest rate and later change it in the contract.
It might seem obvious, but simply working on your credit by paying off some bills can help raise your credit in as short as a month. If you are not in a rush to buy a car, take some time and try to work on your credit.
If you are in a rush for buying a car with bad credit and are not happy with the interest rate you are getting quoted on, your best option might be buying a car from car auctions in your area. You can pick out from a wide variety of newer model cars at wholesale prices and sometimes even below wholesale prices. Since you save greatly on car prices you may be able to buy the whole car in cash or can finance and have a much easier time getting a loan with a lower interest rate.