Buying a car is a big decision and it’s important that you take the time to choose carefully before you rush into anything, because you’re spending a lot of money. But your options are severely limited if you have a bad credit rating unless you have the money to pay for the car outright, which most people don’t. Trying to get financing on a car is tough when you have poor credit and you might be ready to give up after getting turned down so many times. But it is possible if you know how to do it right. These are the best ways to buy a car when you have a bad credit rating.
Try to boost your credit before buying
If your car is beyond saving and you need to buy one right away, you’re just going to have to get whatever you can with your current credit rating. But if it isn’t urgent and you can hold off for a few months before you upgrade, it’s worth waiting a bit and trying to improve your credit rating. There are a lot of things that you can do to boost your credit rating fairly quickly so if you wait a while and try to improve your credit score, you might be able to get a better car loan at the end of it.
Stick to a strict budget
If you’re trying to buy an overpriced car, you’re going to struggle to get the financing for it. But if you’re only asking for a small loan, you’re far more likely to get approved for it, which is why you need a strict budget. It’s best to shop around for loans and see what you can get, then find the best car you can for that budget. If you do it the other way around and choose the car first, you’re only going to be disappointed when you can’t get financing for it.
Choose the right dealer
Picking the right car dealership is always crucial because you need to know that you’re getting a good quality car for a fair price. But if you’re trying to buy a car with bad credit, you need to pick a dealership like Motor Market that specialises in financing deals for people with a poor credit score. You’ll still be able to get a good quality car, but it will be easier for you to find the financing deal that you need.
Make a bigger down payment
You’re likely to be paying quite a high interest rate on a loan if you have bad credit and that means the monthly repayments can be tough to manage. That’s why it’s a good idea to put down a larger down payment on the car so you have less to pay back. Making a bigger down payment and borrowing less also means that you’re more likely to be accepted for a loan.
Buying a car with bad credit is always going to be hard, but it is possible if you follow these tips.
Photographs courtesy of motorverso.com