Embarrassed of bad credit? Just lacking CARfidence in general when buying a car with bad credit?
Everyone on staff at Prestige Auto Mall understands it can be embarrassing to admit you have bad credit – or to have it lurking in your past.
No one likes having a car repossessed or having to declare bankruptcy.
Yet in today’s economy, it happens more often than you think. Just because you have had credit problems in the past doesn’t mean you shouldn’t be able to buy the vehicle you need to continue living your life and fulfilling your daily obligations.
In fact, if everyone actually knew your credit score isn’t a deal breaker when getting approved for your new car then I’m betting you would treat this whole “Car Buying Process” a little differently.
Regardless of your FICO score, getting you into a safe, reliable and AMAZING car is our specialty! But before you start listing out your dream-car qualifications, auto loan seekers with bad credit should be prepared on how to enter the car-buying process.
The more prepared you are, the easier this search will be, so let’s break down the art of getting financed for a car in 2018 with bad credit with these 8 car-buying tips.
Know Your Score
It’s beneficial to know right off the bat that customers with bad credit will typically encounter higher interest rates than those with better credit, but don’t let this discourage you – just be aware. Knowing what your credit score is before you walk into the negotiation room is a solid foundation for the car-shopping process.
You are allowed to perform a free credit report check once every twelve months, so prior to going to a dealership, see for yourself what your score is, what activity has affected your score and if there is any suspicious activity on your report. If so, you’ll want to get that handled before you start shopping for a car. A cheap and efficient way of checking your credit report is by downloading the Credit Karma App. You can check your scores anytime, anywhere, and it’s always free!
Also, bring your credit report with you when you meet with potential lenders so that you are on the same page when you discuss your financing.
Know Your Budget
Getting your hopes up is hard not to do when you start shopping for a car. A lot of times we start focusing more on what we WANT versus what we actually NEED. Try and be realistic as you may be tempted to overestimate what you can afford, as we all would love to drive home in the hottest and latest-model vehicle.
Even if you’re approved for a loan for more than what you thought, check your budget and see how much extra money you have left over after paying bills each month. Once you see what you can actually afford, make sure to stick to that amount, or lower, so you don’t later find yourself between another rock and a hard place.
Find a Good Lender or Dealership
Figuring out how to get a car loan with bad credit becomes a lot easier when you find a lender that accepts applications from people with poor or limited credit histories. Independent car dealerships, such as Prestige Auto Mall, are more flexible with getting you better rates, faster approval and getting you into the safe and reliable car you deserve.
Other lenders that you can check out include banks, credit unions and finance companies. Make sure to explore all your options first before making a decision.
Consider Getting Pre-Approval
Everyone would love a stress-free car-buying experience, but sometimes that’s just hard to attain. However, getting pre-approved will save you time at the dealerships by knowing the exact terms of your auto loan before arriving at a dealership, such as loan amount, interest rate and the duration of the loan.
If you take the opportunity to shop around with different lenders to find the best financing for your situation, you’ll be able to compare terms to hopefully put more money back in your pockets. The advertised interest rates you typically see on TV and websites are usually for the shoppers with the best credit – but if you have bad credit, there may still be options. The rates might be higher, but at least you’ll know what you can afford. To make it even easier, we offer an online credit application to get you pre-approved right away.
Co-Signers Are Good, But Not Always Necessary
There is no doubt that it can be difficult to get an auto loan if you have no co-signer and bad credit. However, finding a co-signer is not always necessary and should be used as a last resort. Before finding a cosigner, you should be aware of the responsibility and risk that individual will take on. If the borrower fails to make payments on time, or at all, the cosigner will be jointly responsible for the borrowed money.
As mentioned earlier, independent car dealerships are more flexible when it comes to getting customers approved and in the car they want. At Prestige Auto Mall, we work with a variety of financial institutions and lenders so we can connect our customers with the best opportunities available.
Know Where to Look
Bad credit might give you reservations about finding a good vehicle, but at Prestige Auto Mall it doesn’t even need to be a second thought. Check out our online credit application to see if you can get approved, today! If approved, we make it easy for you to shop our huge selection of vehicles, including models from BMW, Chevrolet, Mercedes-Benz, Ford, Audi and Toyota. We hand select every vehicle for our inventory and subject each to a rigorous multi-point inspection, meeting our standards for age, mileage and financing, regardless of your credit profile. Only the very best will do for our customers and we remain committed to delivering quality over quantity.
The best way to save you time, energy and money is to get pre-approved before the searching begins. We want to help you find the perfect car to continue living your life and in the most efficient way possible – so, let’s take that first step now and get pre-approved.
A Few Car-Buying Tips
Make sure to look at the Carfax
Before purchasing a vehicle and signing any documents make sure to ask for the CARFAX Report.
A CARFAX Report reveals important information about a car’s history, such as an odometer reading, existence of a branded title such as a salvage/junk title, or past registration as a fleet vehicle.
If they do not have the report or are reluctant to share the vehicle’s history, you may want to purchase the report for yourself. In addition to getting a CARFAX Report, we recommend taking a test drive and having the vehicle inspected by a qualified mechanic. It never hurts to cover all of your bases.
Be okay with less than perfect
When buying a used car with bad credit, you may not be approved for a high loan amount, which may mean you have to sacrifice some of the features you want. Leather seats, sunroof, and a premium speaker system may not be in your price range when you’re trying to buy a car with bad credit. You’re already facing a higher loan payment because of the interest rate. Don’t make it bigger by adding features to your car.
Read all the paperwork
Don’t get yourself in a tricky situation by quickly signing on the dotted line, before truly understanding what’s at stake. Loan documents can be confusing, but your money and your credit are on the line, so it’s important to take time to understand the terms of the loan. Make sure the paperwork matches what you and the dealer came to agreement on, and if it’s correct, sign the loan documents before you drive the car off the lot.
Yes, You Can Find the Perfect Used Car, EVEN with Bad Credit
The majority of car buyers assume that having bad credit affects their chances of finding the car of their dreams; however, that fallacy discourages the whole car-buying experience.
Bad credit easily puts a damper on a lot of things, but car buying should not be one of them. For the last 10 years, Prestige Auto Mall has helped drivers throughout Ohio get the high-quality transportation they need and the financing they need to buy it. Whether you have good credit, bad credit or no credit, we will work with you to find a financing solution. Don’t wait any longer and see if you can get pre-approved right now!
Frankly, we’re a little surprised that more car dealerships don’t get that.
People need reliable, trustworthy vehicles, even if they have less-than-perfect credit. From the moment you walk in our doors, to leaving with keys in your hand, our car-shopping process is straightforward and we maintain an easy, no-hassle experience.
Everything Prestige Auto Mall does is set up for maximum efficiency, starting with the showroom to the financing paperwork.
Hey, before you go! Did this article help get your CARfidence back?
Even if you have bad credit, or no credit at all, doesn’t mean you have to give up on finding the perfect car.
Make sure to share this article with your friends and family who also might be looking for a new vehicle.