Credit is a privilege and a major responsibility. Having good credit means that you can have the vehicle or house of your dreams. In the past, having bad credit could stop you from achieving these dreams, but nowadays, having subprime credit may only hinder your purchase but will not completely prevent you from acquiring them. For instance, one way to get a vehicle that you need despite your credit is through bad credit auto loans. This type of loan will allow you to purchase a vehicle despite having bad credit.
The application process is easy. You need to provide your contact information, as well as information regarding your employment, banking, and co-applicant information, if applicable. Keep in mind that getting an auto loan–even if it is a type of loan for individuals with subprime credit–is as serious as applying for any other type of loan. Whether you have bad credit or no credit, the following same considerations are still in play when you decide to get that car that you need.
Buy a Car You Can Afford
Some people make the mistake of choosing a vehicle that costs more than they can afford to pay for. Make sure that you consider all costs related to paying off your loan while being able to continue living comfortably after the purchase.
Create a Practical Monthly Spending Plan
Creating a monthly spending plan will help you to decide whether or not buying you are choosing to buy a vehicle at the right time. Some factors that the lender or the financial officer will take into account include your monthly income, your savings in the bank, expenses such as rent, mortgage, utilities, food and insurance, and other personal expenses. Whether you purchase a brand new vehicle or a secondhand one through your loan, you will also have to keep in mind that the car will still require maintenance. You need to be sure that you can afford to make the repairs.
Plan Before You Visit the Dealership
It’s best to call the financial agent or the lender before you drop by the dealership. Find out what restrictions your bad credit auto loan has–can you only choose specific brands, makes, and models? Once you know these details, you can then call up the dealership two or three days in advance to ensure they have the make and model of vehicle you are interested in. Some financial officers even offer a type of service where you can just tell them what vehicle you want and it will be delivered right at your doorstep after they’ve handled all paperwork.
Research Different Vehicles
There are many different makes and models of vehicles. Some of them may be exactly what you need, but check their features and current safety ratings to ensure they are a perfect match. The vehicle you choose should match your traveling situation. If you have two or more children, you may want to consider an SUV rather than a sedan. If you enjoy taking trips, you may want to choose a vehicle that features great gas mileage on the highway. Your car should match your lifestyle.
When you’re ready to purchase a vehicle, Dick’s Auto Loan’s financial officers can help you to drive off with the vehicle you need.
New Car Buying Advice, consumerreports.org
How to Buy a Used Car, carconsumers.org