A low credit score can certainly keep you from getting the best deal on a car, but it won’t likely keep you from getting a good used vehicle if you know how to work the deal. If you have a stable job and a stable residence, you can likely get a car lot to finance you a car. Here are 5 tips to help you get that car that you need:
Maintain your stability. Car lots are looking for someone who holds some consistency in life. You need to show that you can stay at a job and that you can also stay put at a residence. Don’t try to apply for a car loan until you’ve been at the same job and the same residence for at least a year. Make sure that the utilities are in your name, too, because they may look at this.
Don’t over apply. You want to try and finance a car before you desperately need one. Begin the application process now and see where you stand. If you don’t like what you hear, don’t go around to other car lots and apply. Do ask the dealer what your credit score is, though. Try to meet at least part of the demands that the car lot makes and then try to negotiate the rest.
*For instance, if the car lot wants $1000 down, can the car lot figure the taxes into the note?
Outline what you need. Tell the car dealer what you need and only what you need. If you just need a basic car for commuting, don’t let the car dealer try to talk you into something more sophisticated. Buy only what you need. You can use the extra money to pay your bills, and you can get more of what you want once you pay on the car you buy for a few years.
*A positive payment record will surely improve your credit score over a matter of a few years.
Stay with what you can afford. It’s easy to say that you’d like to have the extras that cost only a few dollars per month, but what could you do with those few dollars per month? You could stick it back and save it for a rainy day, that’s what, so don’t over extend yourself. Chances are over extension is why you have a low credit score in the first place.
Get it in writing. It’s super easy for a car dealer to make the deal sound good in words, but get it in writing. A written contract protects you and the car dealer, so make sure that you understand what you’re signing before you sign it. If you don’t, you may leave the car lot owing more than you agreed upon.