Bad Credit Car Dealer - Common Requirements for Purchase

With the economy showing little signs of revival, millions of people have been pushed into a low credit score while trying to stay afloat. While you have to do whatever you need to when it comes to keeping your home and putting food on the table, some of these things can bring your score to a point where you'll find it impossible to get a loan from a traditional dealership. This is unfortunate, as it can affect your ability to work, not to mention the other obvious disadvantages of not owning a vehicle. You may be able to find what you need through a bad credit car dealer. Here are some common requirements of such dealerships, although every establishment will vary in their own ways.

A Job

Typically, a bad credit car dealer will want to see some proof of regular income. Some will have tighter restrictions on what constitutes proof than others. Many will prefer to see a pay stub from a regular employer before they begin to negotiate a loan. Others may accept a tax return from those who are self-employed or have some other reason that a pay stub would be impossible. However, you should remember that these dealerships are taking chances by offering loans to those with a poor credit history, so it is in their best interests to make sure the buyer at least has income coming in.

Long-Term Employment

Though having a job is one step towards making a deal with a bad credit car dealer, many will require more than your first week's paycheck. They want to make sure you have steady employment, and this may mean additional restrictions, such as ensuring that you have been at the same job for more than a year. They may also want to see a record of your past employment beyond that point, which can establish you as someone who is responsible, habitually employed, and not someone merely looking for an easy way to get a vehicle.

Repossessions

Having your vehicle repossessed is one of the major red flags that will make getting a loan from a traditional dealership nigh impossible. Unfortunately, it isn't looked upon favorably by many a bad credit car dealer, either. This doesn't mean that it will disqualify you from finding a way to finance your vehicle, but it may put further restrictions on what you can get. Some dealers will want to see the entire history of repossessions, what the circumstances were, and may require that any that might have occurred in the past year be included in a bankruptcy filing. If you have your eyes set on a dealer in your area, ask them what their policy and requirements are regarding repossessions.