Better New Car Prices with Bad Credit
by Steve Cypher on Monday, December 7th, 2009The Illinois CPA Society recently came out with a number of tips on getting the best price for a new car that even consumers with bad credit who are thinking of buying a car with a bad credit car loan can take advantage of.
Why you should use Auto Credit Express
At Auto Credit Express we match up customers looking for bad credit auto loans with dealers in our nationwide network that can help them get a loan while rebuilding their car credit and improving their FICO scores. At the same time, we also believe that an educated consumer is our best customer. We are also constantly writing articles that are related to bad credit consumer auto loans. But we don’t always expect you to take our word for it, so today we are presenting an article written by the Illinois CPA Society.
Even though most bad credit customers end up buying pre-owned vehicles, if you are seriously interested in purchasing an affordable new car that fits into your budget, the following article contains some good tips:
Getting a Better Price on a New Car
Even if you missed out on “Cash for Clunkers,” you can still take advantage of car dealerships willing to make a deal. After the recent rise in car sales, many dealers are looking to continue the recovery, which can be good news for consumers. The Illinois CPA Society offers these tips on getting the best price.
Do Your Homework
No matter what the economic climate, it’s always smart to come to the dealership with a good idea of the book value of the car you want and what competitors are charging. Get quotes from a number of dealers and do some research about a basic price for the model you’re interested in. Tell the dealer about the most attractive prices you’ve seen and ask if they’re willing to do better. When the dealer realizes you’re a knowledgeable consumer who’s willing to go elsewhere to find a smarter buy, he or she will be more likely to negotiate.
Shop for Incentives
Car companies are coming up with a lot of great ideas for getting people into showrooms, so make sure you don’t miss the offers that are out there. To find out what’s available, ask two questions. First, what kinds of incentives do you have for this car? These may include cash back offers or other deal sweeteners. Second, what is the best financing deal available? Some automakers offer loans that carry no interest charges for an initial period or that feature low rates for the loan term.
Know the tax advantage
Consumers should be aware that there is a tax advantage to buying a new car between now and the end of the year. That’s because the government’s stimulus plan provided a small bonus for some consumers who buy new cars, light trucks and motorcycles from February 17, 2009, until December 31, 2009. Those with adjusted gross income up to $125,000 ($250,000 if filing jointly) can claim an above-the-line deduction for state and local sales or excise taxes on car purchases attributable to the first $49,500 of the vehicle’s purchase price. The deduction will be phased out to the extent adjusted gross income exceeds the above figures.
Make your case for financing
None of these opportunities will do much good if you are unable to obtain the financing you need to buy your new car. Many lenders have instituted stricter loan terms due to the uncertain economy and some buyers who once might have qualified are now being turned down. If you have trouble getting financing, you might be able to solve the problem by coming up with a bigger down payment, such as 10% or more of the car’s price. That won’t guarantee you a loan, but the lender may have more confidence in the deal because of the cash you’re putting up. A bigger down payment also means you’ll have a smaller total loan amount, which may not only win you the loan but will also mean smaller payments in the future.
Time it right
Remember that no matter what state the economy is in, there are certain times when it’s easier to get a good deal on a car. At the end of a model year, for example, auto dealers generally want to unload the old models so there’s room on the lot for new cars. In addition, dealers are also often more motivated to sell toward the end of the month to meet any sales quotas for that period.
The Bottom Line
For nearly 20 years, Auto Credit Express has been helping people with credit problems get approved for new and used car loans. Our affiliate dealers work with the leading subprime lenders to get you approved. Your credit report will get checked by the dealer, but once you’re approved, each month you make your car payment you are rebuilding your credit score and reestablishing your financial future.
Unlike many other services, we belong to the Better Business Bureau and our web site is SSL secured, ensuring the privacy of your personal information. Since our inception, we have processed over 1,000,000 online bad credit auto loans and closed over 1 Billion dollars in auto loans.
Visit www.autocreditexpress.com and see what we can do for you.
Tags: auto loan, black book, car loan quote, chrysler employee discount, credit bureau, credit card, equal credit opportunity act, gm, new car prices, we finance everyone
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