Tag: bad credit

Posted on

Buying a Car with Bad Credit 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.

(http://www.BuyingCarswithBadCredit.com)

Jason Lanier, Expert Author.

Posted on

Getting a Fair Deal When Buying a Car with Bad Credit Just Got Easier – PRLog.com

With the relaunch of Buyingcarswithbadcredit.com, those with low credit scores now have access to unique tips and information about buying a car with bad credit not typically seen online. Car buying tips, trade-in tips and more are featured on site.

FOR IMMEDIATE RELEASE

PRLog (Press Release) – Aug 16, 2012 – With a fresh new approach and sleek design, the editors of BuyingCarswithBadCredit.com have relaunched their site with a focus on usability. Easy to navigate pages on clearly labeled topics allow users to find answers to the questions they have about buying a car with bad credit in today’s economy.

Jason Lanier, veteran of the used car business with over 700 published articles on the topic of buying a car to his credit remarked, “The new design looks great and you don’t find this information everywhere…. We want people to have the information they need to make a wise, educated decision in the real world. Patience is key to getting a good deal on a car, especially when you are buying a car with bad credit … knowing where to apply when you have bad credit is a big key to your success with that. If we can help people understand how to avoid predatory lending, we’ve done our job. We think the new design will help users to find the information they need quickly.”

A new bad credit car buying tips area breaks down the negotiating process in easy to understand terms. This new section features unique tips for negotiating that aren’t seen on other websites that aim to give car shoppers confidence to know how to justify their offer to the dealer. Negotiating interest rates is something that is unheard of and this along with negotiating trade-in value with confidence are explored in detail.

A used car trade-in tips section recently added, explores aspects of trading in a vehicle that are truly unique. Topics added include; how dealers value used car trade-ins, tips for preparing your vehicle to be inspected and appraised by a dealer, and resources to estimate a vehicles value. With negative equity being a concern for many people trading with past credit problems, this new section is especially helpful when there the maximum amount for a trade is needed to make a new purchase work in favor of the buyer.

A new area focusing on credit rebuilding tips helps with eliminating the hype surrounding credit repair has also been added, along with an auto loan glossary of terms is also a very helpful resource for understanding industry lingo, the fine print on finance contracts and bills of sale.

“Knowledge is power.” remarked Jason Lanier. That seems to certainly be the perspective in the creation of Buyingcarswithbadcredit.com. With the recent content and design revision, learning how to buy a car with bad credit just got much easier.

— end —

Posted on

Are Buy Here-Pay Here Car Lots a Good Way to Buy a Car With Bad Credit?

If you have a low credit score, you may have had a hard time getting approved for a car at a normal car dealership. You might think that you will have to use a buy here pay here car lot to be able to buy a car with bad credit.

You do NOT have to.

First, let’s look at why you don’t WANT to use a buy here, pay here dealership…

These types of dealers that offer “in house financing” on vehicles, buy cheap cars at car auctions that are high mileage, or have something about them that a new car dealership or mainstream car dealer from wanting it.

It may be that it has a bad mechanical history, has a history of a wreck and in some cases, is what is known in the car business as a “water car”. These are cars that have been salvaged from flood areas, cleaned up and run through auctions. Whatever the reason that a car ends up at a buy here pay here lot, it’s usually NOT because it’s a vehicle in pristine condition or has a clean record.

These types of car lots then take those vehicles, clean them up and charge a price for them that is above and beyond what they would sell for at a new car dealer. They can charge high prices for junk cars because the people that usually are buying them have serious credit problems. Desperation is the key word here – and these types of dealers make a business of preying on people that are “desperate to get financing”.

Then, on top of an already high price, they require a down payment that normally equals a significant portion of what the dealer paid for the vehicle. Enough said.

Also, interest rates are charged that are so high they make credit card companies blush. You can get a credit card at a lower rate than you can get car financing at a buy here pay here dealer. Don’t believe it? Call up a lot and ask.

So, you pay more for the car than book value. You pay for a car that most likely has something in it’s past that makes it undesirable. You pay enormous interest rates and end up with an overpriced vehicle with no warranty that you will owe thousands more on that it is worth. If you DO go that route, make sure you get GAP insurance to cover your debt if the vehicle gets totaled.

If you have bad credit, the best option that you have is to avoid these types of dealerships. There are companies that provide auto financing for people that have bad credit without your having to go through a dealer that finances their own cars. You can get pre-approved online and get financed with little to no down payment.

See what you can qualify for and you’ll be able to get more car, a better car and with much lower payments if you use a good secondary lender on the internet.

http://www.BuyingCarswithBadCredit.com helps with auto finance prequalifying online. See what you can get approved for, before you shop and you’ll be able to make a smarter decision.

Are-Buy-Here-Pay-Here-Car-Lots-a-Good-Way-to-Buy-a-Car-With-Bad-Credit?&id=3315544