In today’s economy, many people are having difficult times with their personal financial situation which is creating a rise in bad credit auto dealers nationwide. People are being laid off, companies are reforming and going under, and money is tight. Peoples’s credit is not what it used to be either, and many car dealerships are having to adjust their policies in regard to credit.
A dealership has to be careful, but it is still has more of a possibility it can finance cars for people with bad credit than one might think. New cars especially are more feasible, since there is more collateral in a newer car, so if the loan goes bad, the car can be repossessed and it will have more value than an older car to resell.
In one sense of the word, all dealerships have to be bad credit auto dealers to some degree. A person who has bad credit and is thinking of purchasing a car should do their homework, and start by obtaining a copy of their credit report. It can be done for free at www.AnnualCreditReport.com yearly. So just ensure that you cancel before that time. In the mean time you can download your credit report from all three agencies, Experian, TransUnion, and Equifax.
Experts suggest that you get your credit report at least three months prior to going into a dealership to buy the car, because if there are any sections on the report that can be fixed, you might have the time to get them repaired.
Many car dealerships will loan money to a person with poor credit even if they come out even on the deal, because of the good publicity they can get on the word that spreads to friends and relatives from the buyer.
You can also fill out a credit application online with many dealerships, but avoid the “buy here, pay here” lots because you will get less in the way of guarantees and the cars may not be very well maintained.
Don’t be afraid of filling out too many loans, with the thinking that it will harm your credit, because if they are all in a 14 day period it’s considered as one “hard” loan.
The more money you can put up as a down payment, the more your chances of securing a loan will be. This reduces the dealer’s risk on the loan, and will lessen your payments as well.
The number of “bad credit auto dealers” are, by necessity more numerous, but they still want responsible people who will pay back their loans. Most of them are willing to work with you and they will have suggestions on how you can improve your chances of getting a loan should your credit be too far gone at the present time.