If you want to trade in a vehicle with negative equity, you will have to deal with the difference between the car’s current value and what you still owe on the loan.
Self-employed car buyers with bad credit should be careful when filling out their tax returns. Claiming a lot of deductions may yield bigger savings, but it will also reduce the size of your reported income.
Bad credit doesn’t necessarily prevent you from being able to trade in a vehicle. However, trading in a vehicle on a bad credit auto loan is typically only possible if it is paid off or you have equity in it.
You are required to bring more documentation to the dealership when taking out a bad credit auto loan. You can avoid having to make multiple trips to the dealership by having these documents ready to go the first time.
Are you an hourly UAW employee? If so, you should know that a profit-sharing check would make an excellent down payment on a brand new vehicle.
Just like with anything else that requires spending a significant amount of your money, make sure that you know all of the facts before applying for special finance/a bad credit auto loan.