| There is no avoiding reality:
all a car dealership has to do is run a credit report
on you and they will see you have bad credit. But
you need a car, and all you want is a reliable used
car to get you back and forth to work! It truly is
a dilemma. Can you get a used car loan with
bad credit ? Will a sticky financial past
hurt your chances?
The answer is yes, but you have to be realistic.
First of all, buying a used car is the smart bet since
you are keeping the price of the car to a reasonable
range. We all want a nice new car but last year's
models, or the cars that have some mileage on them
are usually in great shape (they have to be for a
repudiated dealer to sell them). If you are open to
options, your shopping does not have to be limited.
Used car prices are determined by the condition of
the car, how old it is and the mileage. Also, if the
dealer really wants to move that car and is loaded
with a lot of the same models, you might be in a better
position to bargain for a loan, regardless of your
credit.
There are plenty of lenders willing to take the risk
on someone with bad credit. What it comes down to
is; that your interest rates will be higher then most
(another good reason to keep the price of the car
down) and you might even be asked to show some collateral.
Remember, the salesperson wants to make the sale and
will go to almost any length to do so. Often times
the dealer might be able to suggest a lender or have
a package for a used car with financing, despite your
risky financial status. And of course, you can always
land an auto loan yourself, if you do some legwork.
Sometimes a smaller bank will approve financing to
folks with credit problems. Of course, you should
try your bank first as they might be more willing
to help you.
As you know, if you have bad credit an auto loan
will not be easy to get. But remember, the salespeople
see buyers of all different financial situations every
day. By sticking to a used car you are already getting
out of the fray (and disappointment) of trying to
buy a new car you cannot afford. You realize your
financial past and are moving forward despite the
difficulties. You can land a bad
credit loan, if you keep your eyes open for the best
deals, and a sympathetic lender. There really is no
reason your life has to stop for some mistakes you
might have made in the past. |