3 Tips For Buying a Car With Bad Credit That Will Save You Money

Here’s 3 tips for buying cars with bad credit ratings.

Don’t Negotiate on Payments. One of the most popular tactics that salespeople in dealerships will use with people that have bad credit, is to keep customers focused on payments. By doing this, the salesperson is able to keep you in the dark about the real price of the car and the interest rate. It’s not until you see the finance manager to complete the sale that you ever really realize what you’re really paying. So keep the focus on the price, not the payments. You can negotiate that later when you’re talking about interest rates with the finance department.

Don’t Use Buy Here, Pay Here. Dealers that offer “tote-the-note” financing can be hazardous to your wallet. You’ll pay much more in both the purchase price and the interest rate for a car at a dealership of this sort. You’ll do much better if you steer clear of these types of car lots and get your financing pre-approved online or at a local bank.

Get Your Financing Pre-Approved. There are online companies that provide car financing for people that have bad credit and everything can be taken care of online. By having your financing pre-approved through an online lender or loan company, you’re in a better position to get approved. You also can save money on interest rates as there is no middle-man (dealership). Also, you’ll be able to make an offer based on price, because you’ll know what you’re approved for before you go shopping.

Recommended: http://www.BuyingCarswithBadCredit.com helps with buying cars through legitimate auto lenders online regardless of your past credit history.

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Where is the Best Place to Get a Car Loan With Bad Credit?

By Jason Lanier

So where exactly is the best place to get a car loan when you’ve got bad credit?

First of all, you certainly want to avoid the following…

Avoid Buy Here Pay Here Dealerships. These types of establishments that offer in-house financing charge extremely high interest rates, price their cars at retail or above, and generally always want a down payment. This is not the best place to get a car loan and certainly not if you’re wanting to save money. Buy a car from one of these places and you’ll be paying not hundreds, but thousands of dollars more for finance charges than you have to.

Avoid Dealer to Dealer Hopping. Don’t go hopping from one dealership to another trying to get approved. So many people with bad credit do this and it leaves large numbers of credit inquiries on your credit report. Those inquiries stay on your credit report for two years and they show that you’re having a hard time getting approved. When you go to a second or third dealership trying to get approved, the dealer can see the banks and loan companies that you’ve been sent to already and have been turned down. So, if you’re doing the dealer to dealer hop, stop now!

Online Lenders Save the Day. If you have bad credit, the best place to get approved for a car loan is online. Now don’t go entering your information into 15 websites. There are a couple legitimate sources on the internet that allow you to either search through a database of lenders. There are also sources online that will pair your credit history with lenders that are guaranteed to approve you. In my opinion, online sources are the best place to get a car loan if you have bad credit.

http://www.BuyingCarswithBadCredit.com can help you find a real car loan.

Article Source: http://EzineArticles.com/?expert=Jason_Lanier

Buy a Car With Bad Credit With No Money Down

You’ve got bad credit and dealer after dealer is wanting money down. To buy a car with bad credit, with no money down, you need to know a few things.

First, there are only two reasons that a dealer would want a down payment…

The most common reason is because it adds profit to the sale. The other less common reason is because it’s needed to lower the total amount financed for approval by the lender. Trying to figure out which is the real motivation to pressuring you for cash is a little difficult so long as, you are depending on the dealer to get you approved.

Most people think that if they have bad credit, they have to use the financing offered through the car dealership. After all, the local bank won’t give you a loan right? This is a common mistake that can cost you thousands of dollars in outrageous finance charges.

Let me fill you in on a little BIG secret…

Car dealerships mark up the price of the car. Everyone knows that.

Did you know that they ALSO mark up the interest rate? Yes, they do. They submit your credit application to lenders. The lender responds with an offer. Let’s say that they approve you for a rate of 9%. Guess what? The dealer, knowing that you know you have bad credit will try to convince you that you are approved at 12%. The 3% difference becomes nothing more than profit that the finance manager gets paid a commission on. Guess you pays for it… you. Your payments go up 10, 20, 30, 50 or even $100.00 per month simply because the dealership marked up the interest rate.

The truth is this. You can buy a car with bad credit with no down payment and also with lower interest rates by simply avoiding the dealer finance department altogether. If you know where to look and prearrange your financing (yes it’s done everyday), then you can have the confidence to walk into a dealership, pick out the car of your choice based on the amount the finance company preapproves you for and had the dealer a check. This puts the power of negotiating price in your favor.

Car dealers will be jumping over backwards for your business.

Find Legitimate Lending Sources Here: Buying Cars with Bad Credit.

Jason Lanier, Expert Author.

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