Get Bad Credit Car Finance from a Dealership
Let’s face it – not everyone has great credit. In fact, most people don’t – and it’s nothing to be ashamed of. There are many reasons, some of which are beyond your control, that can lead to you having bad credit.
If you want to purchase a car from a dealer, it is important to know whether you qualify for credit. In most cases, even if you have poor credit, dealerships can offer you a loan. Here are some things you should know prior to apply for bad credit finance from a lender.
Get your Credit Report
It’s important to get your credit report and credit score before you go car shopping – I recommend that everyone do this. If you have bad credit, there are various strategies you can use to improve your chances of getting dealership financing. Getting a good car deal from the dealership can be difficult if you do not know you have bad credit but the dealership knows. Even if you have poor credit, you can still get attractive car deals from the dealership.
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What Lending Risk Do You Pose?
What is the next step after getting your credit report? Based on your credit score, the dealer with classify you as either a prime or subprime borrower. Prime borrowers are those who have a credit score of over 680. Subprime borrowers are those with a credit score of below 680. If you are a subprime borrower, the chances of getting a great deal from a dealership are quite slim. Subprime borrowers don’t always qualify for the best rates and financing terms. This is one of the facts of the auto industry that you will have to deal with. What you don’t need to deal with is dealers taking advantage of your challenged credit, and pulling the wool over your eyes.
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MSRP and Bad Credit: You Don’t Have to Pay the Full Price
Some people who have bad credit get taken advantage of by unscrupulous dealers. The dealer will say that they have to charge full MSRP for the vehicle – that the bank requires it. This is a lie that you should not fall into. Generally, banks do not force the dealers to charge a specific amount of money for the vehicles they are selling. Apart from this, there is no bank that would want bad credit car buyers to pay the full sticker price of the vehicles they want. In fact, banks would want you to pay less since you already have poor credit. If anything, they want you to pay less.
We Can Only Get You Approved If You Buy the Extended Warranty
This is one of the tricks that most dealers like using. You are likely to make the dealer a lot of profits if you fall for this lie. You should walk out of a dealership that insists you have to purchase extended warranty for you to qualify for car financing.
When going to apply for dealership financing, keep the tips above in mind.