How to Buy a Car Quickly With Bad Credit & No Down Payment

Lets suppose that you are in a bad credit situation and you are running from pillar to post to find a car dealer who is willing to sell you that enviable car with no down payment. Well, you are in luck because there are many car dealers that have felt the pressure of the downward economy and want to increase their business profit.

Instructions

Preparation Process

1

Skip the dealer finance arrangement. Car dealers mark up the price of the car as well as the interest rate. The car dealers are like middle men who submit your credit application to major car lenders before you can receive an offer. So if they approve you with an interest rate of 9 percent, the dealer who knows about your bad credit status will tell you that you can buy the car with the interest rate of 13 percent. This 4 percent is their profit. So you end up paying more than $100 per month because the dealer has increased the interest rate without your knowledge

2

Go for a high risk vehicle loan, which lenders offer with a high interest rate. Creditors are basically taking a chance here, especially if they find that you have a good source of income presently.

3

Look out for those dealers who are willing to go for monthly payment terms based on your salary rather than the credit rating. Apply for a used-car loan; they are more forthcoming and the dealers are willing to bargain. They are also willing to reduce the down payment.

4

Go for a dealer or service that specializes in helping people with bad credit buy a car. You will definitely find such services if you look around or check for them online.

5

Get a credit report and check your credit score if you want to buy a car in spite of a bad credit situation. If your score is less than 600, go for an online service that gives special credit.