You need a new car, but you don’t have the best of credit. However, even with bad credit it is still possible that you can get an auto loan. By knowing the options available to you, you can also save thousands of dollars.
By going online you can compare auto loans from all competitors in one place without the hassle of phone calls. You can also shop for loans from the comfort of your own home without feeling under pressure. In addition, you won’t have to wait for hours at the car dealership for loan approval.
The following are five tips to help you get an auto loan with bad credit:
1.Find out what your credit situation is like before shopping. Find out what your credit score is, depending on your number it may not be wise to get an auto loan. If you don’t think you should get an auto loan then simply save up the money so you can pay cash. With bad credit auto loans you may have to pay up to twenty-nine percent interest. By considering this you can end up paying double for your new car. In this case saving money would be the better way to go.
2.You will get a better deal on new cars if you wait until the end of the month to make the purchase. This is when the dealerships give the big incentives to the salesperson. Therefore this gives them an incentive to give you an auto loan even if you have bad credit.
3.If you can find someone with good credit who is willing to be a co-signer then your chases of getting an auto loan will increase. However, the co-signer must have excellent credit since they would be responsible for making the payments on the car if you can’t.
4.Make sure you monthly income is at least twelve hundred dollars. No more than twenty percent of your income should be put towards an auto loan payment. This wouldn’t allow you enough extra money for living expenses. This can also be combined income if you are married.
5.Look into first time car buyer programs online. Some of these online programs will make it easier for you to get your car.
With the ease of new online tools you can simply do a search for bad credit auto loans. You will get many resources and tools that will help you choose the right auto loan for you. Always remember to do your research first before applying for any bad credit auto loan. By researching and selecting the right loan you will save both time and money when buying your new car.