Any person who walks into a car dealership should be informed and aware of how to get the best deal possible, and this may be even more important for car buyers who have less than perfect credit.
Arm Yourself with Knowledge
If you have bad credit and need a car, the first thing that you need to know is that you can still get an auto loan even with damaged credit. You absolutely don't have to settle for a super cheap car that you might buy with cash from a private seller. Many dealers are connected to lenders who are able to work with "special financing," or auto loans that are specifically meant for buyers with tarnished credit. With this in mind, you should still be wary of unscrupulous dealers who could try to take advantage of your situation.
- Don't drive away prematurely. One of the most common underhanded practices that dealers may try to engage in with bad credit car buyers is called "yo-yo financing." A customer is allowed to leave the lot in a car before the contract is finalized. You could happily leave the dealership thinking that everything is fine, only to receive a call later from someone telling you that the financing hasn't been approved. And when you go back to the car lot, you will very likely be subjected to a higher interest rate than you had originally expected, if you want to keep the car.
- Read your contract carefully. Don't simply rely on what you're being told by a salesperson. While the vast majority of auto dealers are honest professionals who conduct business fairly, a handful of dishonest types may try to gloss over unpleasant parts of a contract through verbal trickery. So, take the time to go over anything that is printed on a document before you sign that document. And if anything is unclear, ask questions until you have a firm grasp of every detail of the financing agreement.
- Know your credit, and know the market. Never assume anything about your credit before checking your reports yourself, and educate yourself about what interest rates are typically available for your particular type of credit. You may be entitled to a better deal than you might have suspected.
- Consider the advantages that come with pre-approval. There are companies whose primary occupation is to connect potential car buyers with local, trustworthy dealers who are able to get them affordable auto loans through reputable lenders. Utilizing the services of one of these companies will both increase your chances to be approved for financing, and allow you to know exactly how much you can be approved for before you even step onto a car lot.
Go With the Best
Auto Credit Express is the one of the best resources available to you if you're seeking auto loan pre-approval. We've helped thousands of people with bad credit to get the best deals possible on financing for new and used vehicles. Want in? Just fill out our fast and secure online application to get us in your corner today.