How to Buy a New Truck With Poor Credit

Poor credit usually indicates poor financial management. Lenders might be willing to loan money to those of us with less than perfect credit, but it will cost more. While it is possible to buy a new vehicle with substandard credit, it is difficult. Getting deeper into debt with poor credit is usually a recipe for disaster; but if you decide to borrow, consider some steps to take to obtain a loan on a new vehicle.

Instructions

1

Go online to get a copy of your credit report. There are many websites that offer this service for free. (See Resources 2) The three nationwide consumer credit reporting agencies are: Equifax, Experian and TransUnion. Print the reports and be ready to answer any questions about adverse credit history to the lender.

2

Apply for credit at your local bank where they know you and your credit history. If you can, become a member of a credit union. They are often more lenient in their lending policies than banks and often have their own auto financing department.

3

Arrange financing through the dealership and use one of the manufacturers' finance companies. Try to work with a larger dealer which has more lenders to choose from offering creative financing options.

4

Show the lender mitigating circumstances. Demonstrate proof of steady and sufficient income and residence for at least one year as well as a telephone listing in your own name. Be prepared to have a large cash down payment, about 50 percent of the purchase price, to be considered for a new loan.

5

Consider getting a co-signer. Choose someone you trust, who has sufficient and verifiable income and excellent credit. Remember that if you default, your co-signer is fully liable for your debt so choose wisely.

6

Lease a new truck rather than negotiate a purchase price. With leasing there is typically a low cash down payment as well as low monthly lease payments. Moreover, this may be the only way you'll drive off the lot with a new vehicle. (See Resources 3)