If you have made a few late payments on your bills or maxed out your cards, these might be a reason for your bad credit. And if you consider purchasing a car, even a used one, you might worry that you won’t be able to make the purchase. However, the truth is that you can still make that dream car possible.
Some car dealers will help you finance your vehicle purchase even if you have low credit or bad credit score. It may be difficult to look for one these days, but here in Carfect, that’s what we exactly want for you. Automobile financing with us does not have to be challenging and frustrating. You just need to know that there are car dealers like us who can provide you all the options to help you overcome bad credit and still be able to buy the car that you want even in the middle of having a bad credit history.
How would a dealer finance your car?
You might be wondering why a dealer will help fund your car when you don’t have a good credit standing. And the loan process is not the same from dealer to dealer. But ultimately, it is because people who want to have a vehicle they can call their own are more than just their credit scores. Some dealers though are not that flexible when it comes to understanding people with bad credit history, while there are some who are very considerate and helpful. That’s exactly what we offer our customers because we always want you to get the car you have always wanted. With us, you won’t have to spend longer time rebuilding your credit score just to finally drive that car for you and your family.
In fact, when you get a car from a dealership, it will also help rebuild your credit because your payments are being reported to the major credit bureaus. This way, when you decide to buy another car in the future, you have a good chance of getting offered better rates and a wider range of options. Choose the right car dealership with these qualities, and you will be on the right track to driving your dream car finally home.
Here are some steps you need to follow to purchase a car from a dealership.
1. Start your preparing early
If you are someone who has a bad credit but you want to purchase a car, you need to prepare as early as possible. That’s because even if you find a lender or a dealer that will finance the vehicle, you will still be required to pay for a down payment. Also, if you pay for a larger amount for the down payment, chances are your monthly installment dues will be smaller. Start by taking a look at your credit score as soon as possible, probably at least 3 months before your plan of purchase. Also work on increasing your savings and cutting off unnecessary expenditures off your budget so you can allot more money for the purchase.
2. Choose the right dealer
Like the above mentioned, you need to find a good dealer who is willing to work with you despite having a bad credit score; a dealer like Carfect. It is also better if you already get pre-approved to make the process easier.
3. Select a short-term loan
When you are deciding about the terms of payment, don’t be swayed by lower monthly dues and longer terms. That’s because if you try to make a computation on the total amount, you will see that the total cost of the car will blow up to a much bigger price. A longer term means higher interest rate, that’s why you have to select a shorter term as much as possible.
4. Avoid add-ons
Add-ons to your car purchase might sound tempting but these features will only make the total car price higher. The length of your loan might even have to extend because of this. The monthly dues are not going to be the only thing you will have to think about as soon as you get your car; you will also have to spend for the fuel, maintenance and repair and the insurance, so keep the car cost as low as possible especially when you are on a tight budget.