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How do I Buy a Car with Bad Credit?

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If you have a bad credit rating you will likely find it a bit more difficult to buy a car. The good news is that there will usually be a way to get around this. In fact, there are some car dealers out there that focus on selling vehicles to those with bad credit. They are not doing this out of any type of generosity. It just gives them access to a pool of potential customers who are looking for cars. The bottom line is that most dealers are desperate to sell their vehicles and all they care about is that you can pay the money for the vehicle. Here are a few ideas for how you can buy a car with bad credit.

  • You need to seek out those sellers that specialize in dealing with customers who have bad credit. You can find out about such dealerships online or from people you know. There are a lot of people in a similar situation so you are likely to find these car sellers in most urban areas.
  • One thing that you should expect when looking for finance with bad credit is to be asked to pay a deposit. The amount this will be varies but it is unlikely that you will get any credit without providing this. If you are unable to put down sufficient funds now you may have to wait and save some money.
  • All that the finance agent really wants to know is that you are good for any money they lend you. You need to be able to convince them that you will be able to make the repayments despite your bad credit rating. You do this by providing documentation of your income and available spare cash that you will use to pay off the car. You will be expected to provide documents such as payslips, bills, and proof of address.
  • You will probably be asked to pay a higher interest rate than lenders with a good credit rating. Think about this carefully and make sure that the vehicle is going to be worth the expense.
  • You will want to check out a few options before deciding on the best deal. Remember that if one finance company is prepared to give you a loan that there are sure to be others. If you just accept the first finance you are offered it will be unlikely that you have found the best deal.
  • Never agree to any finance repayment scheme unless you are sure that you can live with it. Work on the amount of money you can afford to pay now and not on expectations of improved finances in the future. If you can’t afford the repayments on the car don’t ask for finance.
  • You are more likely to get finance for a car that is considered high quality. This does not mean an expensive car but one that is considered dependable.
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Meet the Author

Anthony Carter currently resides in Fife, Scotland with his wife Lisa, and their three wonderful children. As a senior editor for various publications, if he's not reading and writing, you would find him photographing and traveling to some of the most far-flung locations around the world.

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