Bad Credit Car Dealer: Preparing For a Purchase

If your spotty record is keeping you from owning a vehicle, you may want to consider visiting a bad credit car dealer. These dealerships look at customers who have bad scores or perhaps no credit at all and extend to them a way to get behind the wheel. There are plenty of things to consider before entering into such an agreement. You're probably going to pay more in interest rates than you would at a typical dealership. There may be much less leeway when it comes to making your payments. Nonetheless, it can be a godsend for those who would have no other way to own a car. Here are some things to keep in mind when preparing for a purchase.

Know your Choices

Don't just jump straight to a bad credit car dealer before taking a look at traditional dealerships. Your score may not be as bad as you think. Even if you have a spotty record, lenders look favorably on things such as belonging to a credit union, staying in one job for a long time, and even staying in one residential address. They like to see stability. One or two hiccups isn't going to stop you from qualifying for a loan. If you need to go to a buy-here-pay-here, so be it, but at least see where you stand.

Read Your Contract

If you're going to buy from a bad credit car dealer, make sure you read your contract carefully and make sure you fully understand exactly what you're getting into. Too many buyers look at how much they'll owe on a monthly or weekly basis, decide whether or not they can afford that amount, and that's as much thought as they put into it. There are reputable dealers who will work with you and want to see you succeed. Then there are those that simply exist to set you up for failure. Shop on reputation and don't be taken in by one of the bad guys.

Know What You're Buying

When shopping from a bad credit car dealer, you're probably not in the best financial situation. It can be tempting to take whatever you can get your hands on. This isn't always the best move, however. You still have the right to be choosey, and you should do just that. If you spend all your money on a jalopy, what are you going to do if it breaks down in a month? Buying a used car is actually a very wise financial decision. But buying a piece of junk isn't necessarily the best use of your resources. You may not be in a position of power, but you are still the customer. Don't settle when you can do better.