So you need a new car, but your credit rating is less than stellar. There are all sorts of reasons that your credit score might be struggling, some of which might not be your fault at all. But to get the best deal and to not be taken advantage of, you need to know how to play the game and get what you want for the price you deserve without taking your credit rating or score into consideration.
Just because you might not have the best credit rating out there, that does not mean that you should allow yourself to take out a super high-risk loan or pay for used vehicles far more than they’re worth. These six strategies are the best way to get yourself the car you want – at a price you can afford – without putting yourself in a bad financial position.
Don’t let someone take advantage of you
A poor credit rating may or may not be your fault. Sometimes just not having any established credit history can negatively impact your score. But that does not mean that you have to take whatever it is that someone is offering you. Before you sign on the dotted line for your car, make sure to check out all of your financing options. What one auto financier will offer might be totally different from another. If you don’t check around, you won’t ever know.
Try different avenues
There are many different ways to finance a car. If you have a rapport with your traditional lending institution, then it makes sense to see what they will offer you. But they are by no means your only option in town. If you go the dealership financing route, they will have a plethora of financing options to explore, so don’t get caught up on just one offer without shopping around and comparing all of your other financing options.
If you do have a relationship with your banking institution, then it might behoove you to try them first. If you have an employer or someone else who will take a chance on lending you money, don’t discount other people who might be willing to lend you the money to get the car that you want or need to be successful and to get to and from work. Explore more avenues than just the traditional ones.
Try them all
Don’t stop with your local bank – or even the dealership – once you have found the car you want. There are many resources online to help you finance your loan. If you research enough, you would be amazed at how many different places you can find to get you the money you need, with an interest rate you can be happy about and repayment terms that won’t put you into the red.
Find other people who will invest in you
Sometimes if you don’t have established credit, you can have other people help to carry your loan. If you know that you can make the payments and are a credible person, then consider asking a more economically-established person in your life to cosign a loan for you. As long as you make the payments they bear no responsibility, but they might be able to help you get the opportunity to drive away in the car you want without putting any hardship on anyone.
Consider all your options
Sometimes getting financing is about being open to different repayment terms and time limits. As long as you ensure that there aren’t any penalties for paying early, then you can take out longer terms to fit your budget and just pay more when you can. If you are able to negotiate the amount you can pay monthly, you might find someone to finance your car purchase over time and take a chance on you. The best-case scenario is that you can pay it off way faster than they thought.
If you have no credit or poor credit, there is still the possibility that you can finance a car if you do your research and are willing to think outside the box. If you can adjust your payment schedule to fit into what a finance company will lend you, that might be another option. Fear not – where there is a will, there is almost always a way to purchase a new or used car.