A less than perfect credit history can see you struggling to arrange any finance, but it is not totally impossible. You just need to do your homework and research all of the information you need to ensure that you are not taken advantage of by some of the poor credit car dealers that are out there. Armed with the right tools you can ensure that you get the best possible deal on your finance.
Step One – Know Your Credit History
Before you even step foot in the showroom of the poor credit car dealers get yourself a copy of your credit history with your credit rating. You need to be aware of what your credit score actually is so that you can be sure that the information the dealership gives you about their search on your credit score is accurate. Plus, knowing your score will give you a little bargaining power when it comes to negotiations.
Step Two – Make a Down Payment
The best way to ensure that you secure your finance with poor credit car dealers is to make a substantial down payment. The bigger the payment you make the more likely your finance is to go through. It shows them that you are serious about your purchase and are more likely to make the payments required in the financial agreement, giving the impression that you are a lower risk than your credit score may indicate. Plus, one of the good things about making a hefty down payment is that it reduces the amount of finance that you need and gets you a better interest rate.
Specialist Retailers
Poor credit car dealers are used to dealing with people in your situation, and understand the difficulties faced when you try to get financing. They may also come up with ways for you to get your finance in place by using collateral, such as your home against the amount of the loan, or asking you to have a co-signer to guarantee the loan on your behalf. You need to be fully aware of what you are agreeing to so make sure you do your homework.
If you have poor credit but still want to purchase a new car, take the time to research poor credit car dealers beforehand. They understand your situation and can help you.