For many people in today’s economic climate, buying a car seems pretty much out of reach. With a poor credit history, nobody will take you on, right?
Wrong, actually. You’d be surprised. There are options there for anyone who needs to buy a car with bad credit, so don’t give up hope. Here are some hints and tips to get you started.
Do Your Research
Here’s what you don’t want to do…
Visit every car dealership in town, spot random cars which take your fancy, apply for credit, get turned down, rinse and repeat.
Too many searches on your credit history will not work in your favour in these circumstances, and rushing into this without proper thought is foolish in any case.
Instead, do some research. Work out your household budget carefully, and be realistic about what you and afford to pay each month. Use one of the many online budgeting tools available to help you translate that into the price range you should be looking at. You might be dismayed that you can’t afford as expensive a car as you had hoped but don’t be, there are plenty of good cars around for less than you might think.
Once your budget is fixed, take your time to research the available cars. Make a shortlist of what your car must have and prioritise. Is fuel efficiency more important to you than a CD player? Is air con more important than fancy trims?
Now visit dealerships or browse their online listings until you find the perfect car.
Gather Your Paperwork
While you’re hunting for the ideal car, gather together everything you have which could prove that you can afford the payments. Wage slips, bank statements and so on are important to your case. If you’re self-employed, gather your accounts or proof of your income over the last six months.
Think About Your Deposit
You’re probably going to have to make a deposit of some kind. Consider any extra ways you can add to the deposit, perhaps by borrowing a little extra from a family member, or by diverting some cash from elsewhere. The bigger your deposit, the cheaper the deal will be in the long run.
Do the Deal
Once you’ve honed in on the perfect car, sorted out your paperwork and got your deposit ready, visit the dealership in person and explain your situation.
This can be daunting, but remember that the salesperson is on commission and only gets that if he gets you the car, so they will do their utmost to help you. Some dealerships have specific programs for people with bad credit, but almost all will be willing to look at your paperwork proving that you can pay, and to try to get you a deal.
So if you have a poor credit rating but need a new car, don’t give up. Do your groundwork first, stay positive, and prove that you can pay – your new car could be closer than you think.
This content was provided by Your Car Credit who are specialists in used car sales, Car Loans for bad credit and Car Finance for people with Bad Credit.