How to buy a used car without great credit?

Question

I have a trade in that's worth about $2500 and all I need is a used bigger vehicle. I've tried a few places but my credit is too slow (or so they say). I'm getting a little frustrated because most people have no problem getting cars, no matter what their credit looks like. Anyone have any suggestions?

Answer 1

You CAN get a decent car loan, even with bad credit. I've done it, but you'll have to look around. That's one of the BIG mistakes people make...just taking the first offer that's given to them when they go to the dealer. Be smarter than that.

WARNING: DON'T GO TO BUY A CAR WITHOUT HAVING THE LOAN FIRST. The auto dealers will eat you alive and give you a crappy rate. Shop around with lenders who specialize in bad credit car loans. It's a better option, you don't have to take what they're offering if you don't want it, and it's better than dealing with the car dealer's people.

There are usually some nationally based car loan companies who specialize in bad credit car loans who advertise on the page linked below...

http://www.axalda.info/bad-credit-car-loans.html

Answer 2

If you have poor credit(they are saying you are a slow pay, you pay the bill, but are often late) you will have to pay higher interest rates, and likely will need to purchase from a small used car dealer. Your interest rate will be pushing 30% if you go this way, I would keep your current car. It's paid for, I take it, and until you get your credit up to snuff, it is a huge waste of your money to purchase at such a high rate, the car will be upside down on the loan, and that's worse than the high interest. Save some money, clear up your credit, and then try shopping in a year of so. Don't trade your car in, they will never give you what it's full value is, if you must have the money, sell it privately.Good luck.

Answer 3

Well, I always work really long and hard like a beotch slave and save all my money, then I buy the car I want cash upfront.
I almost always buy and sell to and from private individuals, but sometimes a dealer skru's up a price and I get to steal one that way, sometimes...
Sux the first couple times around, but I carry minimum liability insurance and no payments and it's way, way cheaper.
Plus, I can't buy something I can't afford lol.

Forget the credit card co's, I done gave up on that joke of a scam, you can't win regardless, I done made all of my payments on time and have no balance and no late payments and all my stuff been straight for 6-7 years now and still my Fico is only 734 (sounds great, until you see why it isn't closer to 850, it's just always a bunch of bs with those ppl).

Cash only for me.
If nothing else, I guess at least my credit's not HR anymore lol.

Answer 4

Have you tried the internet and looked for places that offer financing for those that have little or no credit. Most just require that you have had a steady job for three months, you may have to look at the small car lots than the big ticket lots. It was the only way I could finance a vechile after I split up with my husband. Hope this helps.

Answer 5

Use cash. If you have a car worth $2500, and you need something bigger, there are plenty of good big vehicles available for that much. If you have another $2500 in cash, heck, there's lots of options.

Heck, I'll sell you a fullsize van for $1500. It's just taking up space on me. It runs good. 2 bench seats and four passenger seats.

Answer 6

You are in a tough spot. 1) Dealerships have prime and sub-prime sources. 2) Sub-prome sources for money can be very expensive, 18% plus at unethical dealerships. 3) Dealers will try to overcharge you for the money. 4) banks will not touch you.

The best route is a national dealership, Cal Worthington type, who hold their own paper or financing. They can choose to finance someone who could not get a loan in a traditional manner/traditional bank.

Be very careful, people will try to rip you off, sometimes very badly. I worked selling cars a few years ago. A guy came in with a 18% car loan, we qualified him for 5%. Most people have no idea what they can qualify for. Go to a dealership with a good reputation who has a sub-prime loan program,and be honest with them once you negotiate the deal. Do not disclose your issue before the deal is negotiatied. Good luck.

Answer 7

you may need to finance through the bank instead of the dealership

interest are higher, but if you think you can pay it off fairly quickly it may be your best chance

Answer 8

Try roadloans.com. They send you a check in 3 days... That was the way I got my truck...