Nearly seven years ago, I made one of the most extravagant purchases of my life. After a couple of years of saving money, I bought a shiny new silver sedan. This beautiful car was fitted with a luxurious custom grill. For the first several months, I constantly looked at my stunning new car through the windows of my back door. My acquisition was definitely worth the wait. I’m glad I waited to save the money needed to make a cash purchase. Now, I can enjoy my car without having to worry about monthly payments. On this blog, you will learn how to shop for the best car for your budget. Enjoy the ride!
When your credit score is not the best, you know that making any major purchase or trying to get financial assistance can be a serious struggle. As such, when you find yourself stranded without a vehicle, you may wonder if there is anything you can do to get a working car. Luckily, there are options available to you for purchasing a vehicle even when you have bad credit. Get to know some of these options so that you can get the vehicle you need sooner rather than later.
Try A Buy Here Pay Here Auto Dealer
There are many different types of car dealerships out there that all have different benefits to car buyers. For a person who may not be able to get a traditional car loan, a but here pay here dealership may be just the ticket.
Buy here pay here auto dealers work directly with the car buyer to develop a payment plan or a dealer-provided auto loan to get a person into a vehicle they need even if their credit is bad. These types of auto dealers tend to have more flexible terms than standard dealerships who offer financing through banks and credit unions.
In order to get the best deal possible at a buy here pay here auto dealer, you will need to be prepared to negotiate and you will need to be realistic about what you can afford overall and for monthly payments. Be aware, too, that the interest rate a buy here pay here auto dealer will charge is likely significantly higher than some other auto financing options. This higher interest rate is what allows these auto dealers to work with buyers with poor credit and payment histories.
Get a Cosigner for Better Rates and Approval Chances
Another option for you when you are trying to purchase a vehicle with poor credit is to have a friend or family member with good credit cosign your auto loan with you. Having a cosigner can open up options at more traditional car dealers for you.
Getting your loan cosigned also has the major benefit of lowering your interest rates and allowing you to get a nicer vehicle for lower monthly payments, whether you choose a traditional dealership or stick with the buy here pay here option. Remember though, that if you fail to make your monthly car payments, that your cosigner will be financially responsible to help you cover the cost of your vehicle. So, be sure that you are ready and able to make the payments yourself. Otherwise, you could jeopardize your relationship with your cosigner.
With these options in mind, you can be sure that you get yourself the vehicle that you need in spite of your poor credit. Just remember to be smart about your choices, be realistic about what you can pay, and do not rush your decision. If you follow these guidelines, you will be driving off the lot in a new car in no time.
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