Bad Credit Car Buying Tips: Tricks and Advice

Bad credit car buying can be a bit confusing, frustrating and disappointing if you are not sure who to work with and what to expect. The process is actually quite simple once you understand the basics of buying a car with bad credit. Let's take a look at a couple of keys to the process, which will help you save some time and make your experience a more enjoyable one. Work With the Right Dealer If your credit is middle of the road, you may be able to arrange your own financing, but if your credit has driven off the road, then you'll need to work with a dealer that specializes in bad credit auto loans. Many dealers advertise as bad credit auto loan specialists, but it is not always the case. Before visiting a dealership, give them a call. Ask to speak to their special finance department. If they don't have one, then that's one strike against them. Once on the phone with a special finance manager give them a quick overview of your situation and get a feel for what type of help they might be. Some specific questions you will want to ask them about are:

• The type of inventory they stock. Do they buy cars specifically for special finance?


• The types of lenders they work with. Do these lenders, or the dealership, offer guaranteed credit approval?


• Loan specifics. Will you need a co-signer? If they say that it will be necessary, then they are not set up to do special finance, as a good dealership will have either lenders that guarantee approvals or offer in-house financing.

Don't Expect Too Much You should definitely expect to be able to buy a quality, reliable car, but that really cool, red sports car may not be something a lender is willing to loan money on for someone buying a car with bad credit. Bad credit car buying is a process and will require you to crawl before you walk and walk before you run. Expect a car that will get the job done. Get you to and from work or school and will help you to build or rebuild your credit. Get the sports car the next time around. Money down is not always necessary, but if you can put money down, the more the better. The more money you are able to put down (or trade in equity) the more vehicles you will be able to choose from and possibly, the better your loan terms will be. The Car is Not Yours Until the Deal Funds Just because you've signed a contract, doesn't mean the car is yours. The deal has to fund before you can put the fancy wheels on and the "I can definitely hear you now" sound system in. The most common things bad credit auto lenders will want to get from you in order to fund are:

• Current Proof of Income


• Current Proof of Residence


• 3-6 Complete References (name, address, phone number)


• Proof of Full Coverage Insurance


• Complete Phone Bill (every page, including who you call)

If you can't provide one of these it may affect the funding and therefore the whole deal. Be sure to bring these items with you to the dealership and they should be able to verify up front what will work, what doesn't and how to get around it if necessary.