How can I get a car with bad credit??

Question

My credit is below 500 so no dealers will finance me with a long pole, if I do not have a co-signer am i basically screwed? or is there some other way???

It's sort of urgent I need the car because I need a way to go to work. No work, no car... no car, no work!!!!

Answer 1

There are subprime finance companies that will finance you. Our dealership routinely gets customers financed with credit scores well below 500. And this is with a true lender that will report to the credit bureaus.

Consider this; if your credit is poor, you're going to have to "buy" your credit back. YES, you'll be charged a high interest rate. YES, the bank will have more say so than you do many times on what vehicle you'll be purchasing. YES, most lenders will want to see a $1000 investment or more from your end. YES, you must be employed with a minimum monthly income of $1500 or more most times.

If you're serious about rebuilding your credit, this is a great option for you. Most Buy Here Pay Here lots won't report your payment history to the credit bureaus so it will not aid you in building your credit. Plus, most BHPH lots will sell you older cars or higher mileage cars that may very well have problems. The subprime lenders I mentioned will have guidelines as to what vehicles they'll finance. Our lenders want a car 2000 or newer with 50,000 miles or less. That being said, you're more likely to get a newer more reliable car. We routinely finance sub 500 scores into '06 and '07 models with factory warranty.

Some BHPH lots do report to bureaus though. So if you decide to do the BHPH car, just ask them if they report. We have a BHPH lot and we do report to the bureaus. We see this business as a true "farm system." If we can't get someone financed through traditional or subprime, we'll finance them in house if they have a good work history. Then, we'll report their payment history, and most times they're able to bulid their credit and buy on our new and pre-owned lot the next time.

Yes, you could save up a couple grand and buy a car. Yes, you can go to a low-dollar BHPH lot. But neither of these is going to get you into a better credit position for the next vehicle purchase.

It's your choice, but if you're serious about building your credit and you need reliable transportation, continue to look for a franchise dealer that specializes in subprime financing. They should have options for you.

Good luck. Feel free to email me if you have any questions. I'd be happy to help.

Answer 2

There are many car dealers that will find financing for people with poor credit scores. The problem is the terms of your loan will suck. You will probably have to come up with a larger down payment, will have higher interest and your monthly payment will be much higher.

If you absolutely must have a car and can't make due with your current vehicle (if you have one) you may want to consider a good running junker to get you by until you can save some cash. It may not look real nice, but it may get you by and save you a lot of money until your credit score improves. The more cash you have, the better your bargaining position will be.

Once you do have a safe, cheap vehicle, start making a car payment to yourself. Deposit $300 per month in a savings account with your credit union - not in a checking account where you have easy access to the money. After 3 or 4 years, you will not only have enough money for a new car, you would've earned interest on the money instead of paying interest to a lender.

Until then, if you absolutely can't find a car, consider public transportation like a bus or a train.

Answer 3

Well, there's always buy-here pay-here lots. If you can find a reliable car (a big if, by the way) you can do alright. Make sure you negotiate the terms, though. They almost always try to stick you with some ridiculous interest rate (20 - 30% per year) and give you some kind of "warranty" where you pay 50% of the necessary repairs, but the fine print states that you pay 50% of the parts and ALL of the labor, which is where they get you anyway.

You could also try a guaranteed credit lot that a few dealers have going on now. From what I understand, if you have a job and a checking account, you can buy a car there.

Good luck

Answer 4

Theft is the first ting that comes to mind! Secondly, I understand, and feel bad for you. But the only real choice you have is cash, buy a cheap car. preferably something foreign with as low miles as you can find for the year. Take good care of it, you'll need it for the next year at least. Follow a strict schedule of maintenance, you need to make it last. NEXT and most importantly, contact the big three Equifax, Trans-union, and Experian. Get your free (FREE) credit reports, and start writing letters contesting any false or misleading information on them. Contest everything, and make them prove that you owe it. IF you do try resolve it, and ask for a favorable reporting to the credit bureau's. In six months, you'll be able to buy a BMW. I guarantee it. Try the link at the bottom for further info and assistance. And good luck. In this day and age you are only as good as your credit. That's how the rich get richer while the poor get more destitute. Beat them at their own game..(die owing millions) BY THE WAY, THESE ARE FEDERAL GOVERNMENT WEBSITES, ANY attempt to duplicate or copy them for fraudulent purposes will be reported. And the Feds will own your a$$.

Answer 5

your best bet is to save up your money. Walk to work, catch a bus, or get a ride from a co-worker. Save your money up fix your credit, so then you can finance a good car with a low percent rate.

Answer 6

You can go through a car dealer that does buy here pay here, it will not affect your credit score, make it better if you make your payments ontime, they usually require a $1000 to $3000 down payment.

Answer 7

well is the end of the year so that means almost every one is giving out deals on cars especially since nobody is buying cars because the hollydays left them broke go out and check their incentives someone out there will have the heart to sell you a car unless you are looking for a Mercedes or BMW or something like that you should be OK......happy new year

Answer 8

they have places that do bad credit, but man be careful. Watch out for the intrest rate. don't do any thing over 12%. Its better to save and buy the car.

Answer 9

sorry to hear you have bad credit
Try a buy here pay here lot.
Also ask if they report to the credit bureau so your credit will improve.
And apply to Orchard bank for a secured credit card they specialize in bad credit cards. But it will help you a lot

Answer 10

you can go to a buy here pay here lot they,ll help you get back in a good car,,they specialize in this,,bad credit,,no credit,,bank rupcy,,they don't care,,but it might help you get your credit straitened back up,,but if you don't pay them,,you,ll be on every ones bad list,,but that's a good way to get started back out again,,good luck hope this help,s.happy new years.