If you are in need of a car but have bad credit, you may think there are no options. However, there are actually many things that you can do. Of course, which option will work best for you will depend upon how bad your credit is.
The following are a few options and strategies you may be able to use to get the car you need.
With a Bad Credit Score, You May Still Be Able to Buy a Car with a Couple of Changes
Technically, there’s no “bad” credit, there are only credit scores. Experian, a credit reporting agency, lists five levels of credit: exceptional, very good, good, fair, and poor.
If you want to buy a car, you will need a good or better credit score, which is defined as 670 and up. But if your credit score is in the upper half of fair, you may still be able to get a car. Your credit may still be regarded as bad, but a dealer may still sell you a car with a higher down payment or a cosigner. This is more likely to be the case with dealerships that carry their own financing.
With a Bad Credit Score, You May Be Able to Get a New Car
Although it seems unlikely, under certain economic conditions in the country, it’s possible to buy a new car with only fair credit. If the car industry is slumping and dealerships are motivated to sell, this strategy can work.
You start with research to find the slowest selling car on the market among the lowest priced new cars. Once you have found this car model, find the nearest dealership and walk onto the lot. When approached by a car salesman, let him know you’re not looking to buy. You’re saving for a higher down payment, and your credit is only fair. If the salesman thinks he can sell you the car, he will try. The interest rate for a new car will be high, but you will have a new car.
With a Bad Credit Score, You May Be Able to Get a Used Car
What may not work for a new car, may still work for a used one. You need to look for slow-moving used car models. These cars are not popular. Maybe the car manufacturer has gone out of favor with the public. But these cars are likely dependable.
Some used car dealers may be more than happy to work with somebody with bad credit, as long as it’s in the fair category. You may have to put a higher down payment for the used car, but a high down payment on a used car means that you will have a car worth more than the car loan.
With a Bad Credit Score, You Can Buy from Auto Dealerships That Sell to Clients with Bad Credit
If your credit rating is in the poor category, this may be your best option. Your credit may be poor due to bankruptcy, or perhaps you had a repossession on your credit report. Whatever the case may be, this type of dealership will work with you.
For this reason, you can get cars with low down payments. In fact, $500 down payment cars are available. These dealerships just typically require that you at least have a steady income. From there, they will work with you on a payment plan.
In Summary
If you have bad credit, and you need a car, there are options available to you. You may be able to buy one with a higher down payment or a cosigner for the loan. Under the right circumstances, it may be possible to buy a new or used car if it is an unpopular model. But if your credit is very bad credit auto dealer. you need to look at a bad credit auto dealer.
