What You Should Know About Cars This Year

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. Generally, dealers can offer you bad credit loans to allow you to own the vehicle you have always wanted. Below are some things you should find out before approaching a dealer to finance your bad credit car purchase.

Get your Credit Report
You should find out your credit score and check the credit history before starting to shop for a car. If you have bad credit, there are various strategies you can use to improve your chances of getting dealership financing. If the dealer knows you have bad credit, and you don’t know the details, he can and will use this to his advantage. 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?
So, you got your credit report and score – now what? Depending on your credit score, you can either be a prime or subprime borrower. Borrowers that are classified as prime are those whose credit score is above 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. However, this is not to say that a dealership should take advantage of you because you have poor credit.
What Do You Know About Cars

Having Bad Credit Does Not Mean Paying the Full MSRP

If you go to an unscrupulous dealer, you may be lied to if you have bad credit. For example, a dealer may indicate that the bank requires the full MSRP for the vehicle that a customer wants to buy. Do not fall into this trap. No bank has any stipulations on how much the dealer has to charge you for a car. They most certainly wouldn’t require you to pay full sticker price. In fact, given that you have poor credit, the banks would want you to pay less.

Financing Approval is Only for Extended Warranty

Dealers are fond of using this trick. You are likely to make the dealer a lot of profits if you fall for this lie. If a dealers is insisting that you purchase extended warranty in order to be approved for car finance, find another dealership.

When going to apply for dealership financing, keep the tips above in mind.