Dealerships often rely on credit scores and financial history to determine if a person is liable to make their car payments. After all, they don’t want to sell a car to someone who isn’t going to pay for it. You may have had a bit of financial difficulty in the past, or you may be a student slogging underneath your loans, but it’s likely that you need a vehicle to get yourself to work, drive your children to school, and complete most other adult responsibilities. You may feel that you’re boxed in with the rest of the buyers who are unable to pay for their cars because of the heightened rates offered to those in debt.
If you have poor credit but need to purchase a vehicle, plan as best as you can. Below are some tips on what to do if you have to buy a car but have bad credit.
Plan to start budgeting a few months before you go out to buy a vehicle. Don’t take on new credit cards and be sure you’re consistent with your payments. Do whatever you can to improve your credit score, so you can show the dealer that your score is getting better and you are capable of paying those car payments.
Research the Rates
You can likely expect to have to pay a bit more interest with lousy credit. You also don’t want to pay unreasonably high amounts either. Take the time to do a little bit of research on some of the cars that you’re interested in and the rates that dealerships are charging. The listed prices are typically for those who have good credit, so you can expect that your rates will be higher. By coming in armed with information, you can be sure that you’re making a good deal for yourself and the dealer.
Larger Down Payment
Another way to secure that car sale is to offer a more substantial sum for the down payment. By showing the dealer that you have the money to pay for the car and keep the car, they may be more willing to sell it to you. It will also typically widen the selection of vehicles that they offer you.
Check Non-Profit Agencies
There are agencies out there that are run by the state that offer loans for vehicles to people who have a low income or poor credit. Individual banks and credit institutions might have a solution for you, but you must inquire.
Get a Cosigner
If you have a friend or family member that has a good income and excellent credit score, you may be able to purchase a vehicle or get an auto loan with a cosigner’s help. When you talk to the dealer, find out if having a backer will help you get a car in your current financial situation.
Consider Speaking with a Credit and Debt Attorney
To learn more about what to do when in a bad credit position, an Illinois debt attorney can help provide a plan of action for you. The Benveniste Law Offices have helped countless individuals get out of their financial situation to see better fiscal days. Contact us today by calling 1-800-497-5358 to receive your free case evaluation and learn what can be done for a brighter tomorrow.